Posted by Brent_IL on April 13, 2002 at 15:53:50:
To get this deal (deal?) you need to stay in contact with the homeowners. The whole thing hinges on the underlying financing. Does the builder have a take-out loan commitment in place awaiting only the $8,000 payment to be funded? They will have a harder time qualifying now than they have had previously because of the lay-off.
This scenario is analogous to a foreclosure without the back payments. They can’t afford to stay even if they close. The five to eight thousand is probably being weighed against relocation expenses. You can’t put too much into the deal because there are more attractive CRE alternatives.
You could offer the $11K back in 5 ? 7 years. I?d also feel out the builder to see it he could help. It?s inexpensive to talk.
This might be O.K. in a fast appreciating area. The property may have appreciated a few thousand during the construction phase. After they get financed, I’d purchase subject-to and look for a L/O or R/B.