What should I have done? - Posted by TRandle
Posted by TRandle on December 28, 2000 at 12:30:19:
Here’s the quickie details:
1,700 s.f. SFH listed with realtor for 150k
ARV is approx. 150k to 155k
house has 5 exterior doors
was recently reconverted back to SFH from "triplex"
needs 3k to 4k in general cleanup and cosmetics
1st is 75k with 7k arrears; 8% fixed; $1,056 per mo.; 23 yrs left
2nd is 43k with 4k arrears; 14% fixed; $574 per mo.;
prop tax is 3k+ - not paid yet
I do not (still) have an agreement on this house because I could never get the seller to tell me the amount she wanted. The first lien is foreclosing on Tuesday the 2nd. I got in touch with the first lienholder for the reinstatement figures.
Initially, the seller told me the 1st was 4k behind and the 2nd was only 40k and current. So, after finally getting accurate figures that added 11k to my numbers, I told the seller I could only do this if I can get the 2nd at a discount - still couldn’t get a number out of her or a contract.
I contacted the 2nd lienholder and explained the situation since they were unaware they had less than a week to act. I also made their job easier since I provided all the necessary info for them to cut me out of the loop.
Anyway, I sat down and typed out John Behle’s contracts and exhibits (for days, joking) and sent the 2nd an offer for $1,500, which was rejected. They said they would need at least one-half of the balance. Now, I realize this is a decent deal at this point if I want to step into their shoes and foreclose on the 2nd. I decided I didn’t want to do that and told the seller I’m done.
Finally, I get a number out of her - $5k, so now I’ve called the 2nd back and offered 20k, plus reimbursing them for costs to reinstate the 1st. My verbal offer to the seller is 5k and I have no responsibility for the realtor or property taxes (paid out of cure amount?). What other alternatives did I have that I didn’t see? Thanks…