Divorce Pre-forclosure
I was just given a lead for a home in New Caney Tx. It is not listed. The home owners have separated, owe 118 on frst, 56 on snd, behind 2 months at 715. No notice has been sent. They want 118. It's APR is 225-250.
I know how to do short sales, but I need to have a buyer/investor once the banks ok the deal. What is the best route I should take to get a buyer to buy or flip? :-o
I am assuming the numbers you are stating are in thousands....
Also, what do you mean by "They want 118"? Who are "they"? The owners? And if it is the owners, what does it mean "they want 118", if they owe more then that?
Sorry, this post is very confusing, I think you need to clarify.
Sure! The current owners owe 118K on the first. They (the owners) wish to sell the house for what they owe. The home is soon to be in foreclosure. The market value is about 225K-250K. The payments on the first are $715. They are 2 months behind. There is a second for 56K.
The issue on owing more than 118K is handled through a short sale. We can get the second to accept .10 cents on the dollar once they know the first is in forclosure. The bank of the first MTG may discount their loan 20%. So, after the deal is worked out, the offer to the sellers will be lower than 118K. It will be the exact amount of the discount the first bank provided.
I need to add, the price for the new home owner buyer can be at retail. For an investor, we can work out a split on the equity. Thanks.
Quote:
On 2004-10-08 15:07, manganet wrote:
Sure! The current owners owe 118K on the first. They (the owners) wish to sell the house for what they owe. The home is soon to be in foreclosure. The market value is about 225K-250K. The payments on the first are $715. They are 2 months behind. There is a second for 56K.
The issue on owing more than 118K is handled through a short sale. We can get the second to accept .10 cents on the dollar once they know the first is in forclosure. The bank of the first MTG may discount their loan 20%. So, after the deal is worked out, the offer to the sellers will be lower than 118K. It will be the exact amount of the discount the first bank provided.
First of all, if you are doing a Short Sale, you should know, since you mentioned you are familiart with Short Sales, the owners by law, cannot receive anything. That said, I am still not understanding what you mean by the "owners want to sell it for 118K". The selling price is completely irellevant to the owners. Also you say that the first would discount by 20%.... HIGHLY unlikely... Why would they if the FMV is 225k-250k, they will get all their money if they go to action. As far as second accepting .10c on a dollar... where are you getting all this?
I would suggest for you to pick up a book on Short Sales, or talk to some people who have experience doing this. It this point you need to learn things.[ Edited by reinatalie on Date 10/08/2004 ]
Reinatalie, I appreciate your input. Since you don't understand my post, let others provide input. My knowledge of short sales is sufficient and is not the matter of my post. I am sorry if the information I have provided is too terse, but I am sure others are familiar with what I am asking. Thanks again.