30K In Equity
I have a seller that is facing foreclosure. I think she is about a month away from losing the house. The mortgage is behind about 5K. The total amount owed is 49k, but the house is worth 80K. The owner is willing to do whatever she can to save the house but she wants 15K for her equity. She said she is willing to wait a few months for this money. What is the best way to do this deal?
the numbers would be great if you didnt have to make up 5k in back payments or pay her all of that equity. tell her that the only way the deal will work is if it is profitable.what is your exit strategy? are you going to L/O sell conventionally? sell the contract?
I would like to try to sell conventionally. I own a credit repair company so I always have clients that are ready to buy a house.
So, have you pointed out to her that in about 30 days, she's going to be living somewhere else? And, that you're willing to help her out by saving her credit, but the best she's going to get out of it's a little moving money? She's obviously way in denial, so if she doesn't come around soon, sounds like this is a dead deal...
To make it worth your time, I think that I would offer her about 2-4k tops for her equity with a long speech leading up to that instructing her that it is the best you can offer her but it is a lot better than nothing. I am interested in knowing if she would want to stay as that could open up some possibilities.
This is the weird part. She hasn't lived in the house for over three months. She was just going to let the house foreclose so that is why I don't understand why she is asking for so much money.
Well I have negotiated a little more and the seller is willing to sell me the house for 10K over her payoff. She is willing to accept a promissory note for this amount and give me time to sell the house conventionally.
I'm, with Jam200: this woman is in serious denial. If she follows her original plan and lets it go to foreclosure, she's got:
- no house
- ruined credit
- possible deficiency judgements against her
- no money for equity
- no money for new housing
Have you pointed out that selling conventionally may take longer than the bank's willing to wait, that commissions, closing costs, etc are going to eat up a lot of what she considers to be her equity, that your cash offer will end this ordeal in short order?
If, facing all that, she still thinks she can get someone to buy it from her for more than she owes, I would say to move on to the next deal.
Andy