Buying Note As A Purchase Strategy
I'm a newbie to note buying and appreciate feedback on the following strategy for a potential deal.....
The homeowner is in pre-forclosure (4 months behind) and wants to sell. The amount due on the mortgage is 88k and is probably worth about 95-100k in it's current condition. I didn't think a SS will work because there is some equity and the most recent apprasial came in at 120k about 6 months ago. Is it advisable\legal to create a contract with the homeowner contigent on purchasing the mortgage at a discount. I could clear the mortgage for less than 88k and pay the HO a few thousand. I'm thinking this would help create the extra equity I need to make a flip or rehab viable. Would the bank go for this? I know the deal may be a bit lean but does the strategy make sense?
What are your thoughts?
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