800k+ Home In Default
Seller has home in foreclosure. It is comping at 867k and he is asking 510k. Opening bid is 495k so I guess he wants 15k. I am unsure if I should just ask for the deed...obviously I wouldn't give him money til I sold it.
Woudl the bank discount with that large a spread? I think it's 5th 3rd.
My biggest question is unloading it before I have to pay it off. If I have to get the seller out, (not sure but think they're in there) and do an auction...and are people using auctioneers like for million dollar homes or are they doing the "5 day sale" kind of competitive bidding? Sounds like a logistical nightmare to me. (at closing) Wouldn't it be impossible to record the deed after the foreclosure process has started? Getting the deed from seller to buyer seems like a pain, especially if seller sees how much I'm making. Or is that where POA works good?? 
Any help would be appreciated!
have you tried to get a loan to buy the house?
Although you'll be paying probably 15k in fees minimum if you buy outright, you can call the shots for the sales approach, rather than needing to sell right away. and the seller won't even know, and probably wont care what you get or do with the property.
You can sure try to talk to 5/3rd about a short, but my guess is that with the $$ they are asking you will have a tough sell - plus when they see the seller might make some $$, they'll probably not SS.
let us konw what you do.
Just wondering, with so much equity, why is the owner asking so little?
Also, when is the sale scheduled?
I think I will have to buy it outright since that will be the easiest way to sell. He doesn't care if I buy it for $20 and sell for 2 mil (I wish!!) but it will just make it easier in case his attitude changes. May be a moot point because I haven't been able to get a hold of him today.
It's on the mls at $735 which has me curious why it's not selling for that.. in light of the comps! I have someone going to check it out tomorrow and from the photos on the realtor's web page, nothing about the curb would make me want to see it (dead winter pics) but surely if all else checks out it would clean up nice. It's only 9 years old and interior looks great. Needs landscaping!!
Turns out there are actually 3 lienholders who've all agreed to discount and 510k is the total, so 5th 3rd had to have discounted. Seller knows he is getting nada. So to answer the second post...he's technically not asking 510k (on the mls) that's only the amount of payoff to get him out of foreclosure.
The seller is still in the house at this point, trying to get a tenant out of his other house to move into.
Would you guys auction the house, or stick it back on the mls spruced up?
And just for future reference...can I record a deed after a foreclosure or bk is filed?