Buying A Foreclosure With A USDA Mortgage
Someone at a REI club my cousin belongs to had a certificate of title for a property in Florida. Apparently the investor bought the property at a foreclosure sale .The investor had been liquidating their portfolio because they are no longer interested in managing real estate due to ill health and offered my cousin the certificate. My cousin agreed and bought it for $35K
When I checked out the property I found that is has a USDA mortgage for $94K issued 7 years ago with 23 years left. I do not know if it is defaulted or not
The property is worh around $164K and needs some roof and other repairs - less than $10K if he does it himself. More if he hires a contractor.
I am trying to help my cousin figure out what to do at this point.
With the certificate of title my cousin also got a writ of possession
I thought he could contact USDA and see if they will reduce the amount owed because of the need for a roof and whatever else they will accept. Other than that I told him to see if he could assume the mortgage and rent the place after repaired. He could get around $1300 -$1400 per month with section 8. That is all I could think of.
Are there any other options?
[ Edited by linlin on Date 12/02/2006 ]
Permits? What are permits? lol
I have no experience dealing with a potential SS with USDA. Maybe the SS Pro or others could help you out.
Good luck.
[addsig]
If you want to make this deal happen, get the payoff from the attornies.
The attorney is hired by the lender and will do whatever the lenders asks.
The total amount to payoff the loan will include attorney fees and the lender has no idea what those attorney fee are. Of course the payoff will also include late fees and interest, and the attorney has no idea what those are. If you want title insurance and the title company wants to get the payoff from the lender - why is that a problem? My method of operation is to ask for a payoff and reinstatement from all lenders and from the foreclosing attorney. I will reinstate or payoff from either the lender of the attorney supplied numbers.
However, when it gets really close to the auction date, I prefer to payoff from the attorney so that the money gets to them ASAP because it is the attorney that will stop the foreclosure.