$45k Equity- How Will I Get Paid?
I have a seller that is in preforeclosure with a sales date of 10/28/04. She wants half of the equity if we sale the house minus our cost. $2300 will get the house out of foreclosure…. There’s about $45k in equity if we sold the house to a buyer that wants to live in the house. Normally, I wouldn’t even entertain giving that much up but she made it clear she will let it go into foreclosure if she can’t get half. I don’t have a problem with doing the deal but I want to cover my interest in the deal. I’m going to pay the $2300 to get the house out of foreclosure.
My question: What should I do to cover my interest in this deal?
Should I be placed on the DEED, simply place an option on the house or WHAT?
If so, how would I get paid if a conventional mortgage is used by the buyer?
do you have a buyer that is ready to buy. or are you going to find one. you have the "if" word in your buyer sentence. this can effect ways for you to do the deal.....km
Well I have a list of buyers that are 80%-95% prequalified thru a couple lenders…. We would hold a 2nd to move the house.
Your seller is not really motivated which puts you at a disadvantage. Something about this deal makes me feel uneasy. I think I would cover my bases by acquiring the property subject to if you intend to reinstate the mortgage. Then you at least have control of the property. Or if it is in bad shape do a short sale. But if you do a short sale, your seller cannot receive sale proceeds. You have to decide if the deal is worth it or not, but do not let your seller stay in the house, or be on title.
i agree with b/n the seller is not motivated enough. don't let them set the terms. you figure out what is best for you and stick to it. back away and tell them you don't think it is going to be worth your while. this will give you control of the deal...........km
Try transferring it into a trust, which will give you a more secure interest. Feel free to email me if you want to know more info.