Posted by JohnBoy on February 21, 1999 at 11:41:28:
AH HA! So even the master himself has his weak spots, eh??? LOL
Would you L/O to this guy? - Posted by David(Ca)
Posted by David(Ca) on February 21, 1999 at 24:15:44:
He stopped by my open house today and was interested in the L/O I am offering.
He is in foreclosure, due to a divorce, and is about ready to walk away from his house (the wife already left), just let it go back to the bank. No, there isn’t enough equity for me to bring the loan current and take over the payments, I think the house is gone.
He has a job and can handle the rent and move-in expenses, but I’m not sure he can get a loan in a year because of the foreclosure.
If he can’t get the loan then I keep the option consideration and do it all over again, right? Or, is this taking advantage of the guy? Or, am I analyzing this too much?
Re: Would you L/O to this guy? - Posted by Roy
Posted by Roy on February 21, 1999 at 14:27:20:
more cash up front.
Re: Would you L/O to this guy? - Posted by JPiper
Posted by JPiper on February 21, 1999 at 11:20:40:
Sounds like you just bought a story.
This guy is in foreclosure because he and his wife didn?t make their payment?.not because they got divorced.
If I were going to l/o to this guy I would want 1) sizeable cash upfront so that I know I have his attention 2) enough time so that his foreclosure is not as big an issue with the lenders. As far as sizeable cash he should have it?.he hasn?t been paying his house payment. I would further see if he has stopped paying every thing else as well. Check his credit.
This guy is not your prime candidate in my book. I?ll take a guy who had difficulties, perhaps a bankruptcy, but paid his rent or mortgage payment. This guy is telling you from his record that his house payment was not a priority for he and his wife.
But, as with most things, enough cash upfront will help with my doubts.
JPiper
Re: Would you L/O to this guy? - Posted by Dan Fink
Posted by Dan Fink on February 21, 1999 at 08:04:09:
Call a good mortgage broker in your area and have them look at this guy.and tell you if he will be able to get a loan in a year.
sometimes they over look a problem if it is a issolated problem. Does he have the income and if he has perfect creit for the next year he may be able to qualify.
consider extending the LO to two years if need be with a additional option payment made at 12 months
Dan Fink
Re: Would you L/O to this guy? - Posted by PBoone
Posted by PBoone on February 21, 1999 at 01:19:27:
If this is something you do make sure you get enough option consideration to cover you over and above normal.
Remember… this guy has nothing to lose.
Getting a loan in a year would be next to impossible at anything above 65%ltv for this person.
Pat