Finally Found One With Equity.
The scenario:
lady owns a 140k home with a 95k balance.
due to the fact that she cant refi from the 12% 10 year loan she just stopped paying. her husband had a stroke and she hurt her foot and cant go up the stairs in the big home so she MOVED OUT.
just filed for bk because of home & attorney told her she didnt need to.
he tried to get her to file chap 13, & make payments so she can keep the home but she said she didnt want the home. no court date has been set and it has not been finalized.
bk attorney fees of some sort i'd imagine, although i need to stop the bk.
Due to the fact that the BK isn't final, the owner still is able to deed it to me right?
She says she has other miscellaneous bills that she owes that she doesnt want to pay for either.
She said is not in the correct state of mind to conduct business so talk to her attorney but "i would love to sign the home over to you." [she is in her 70's]
best of all, seller says "i dont want to make a dime off the house, i just dont want the corporation to have it" -corp =lender
The numbers:
140k FMV
-95k owed on loan
-5k in back taxes
-2800 for past 2 months payments is owed[late fees too i guess]
=37k in equity before attorney fees [please help with my math]
Garage door needs to be replaced, house needs to be painted and new doors. That’s it.
What would you do to get the deal folks?
Verb[ Edited by verbatim on Date 02/17/2004 ]
I like your advice about wholesaling to someone giving them 20k in equity.
Someone else suggested having her rescend the bankruptcy filing & get the paperwork to make sure. do title work, then get deed. [should i do title work before i have her rescend the BK or after]
Using the 2 suggestions together looks like a formula for success to one who knows nothing[me].
what do you think?
She also said their is a 5% prepay penalty which would be another 4k to subtract, thus bringing the quick flip profit down from 15-18k to 11-14k.
Still cool with me.
Quick side note: i talked with the attorney she approached initially to do the bk. he said it has been transfered to another lawyer who will be the trustee, and that the trustee will probably sell it for no less that fmv[140]
what struck me wierd about the lawyers statement was he said it was to late. this is the same lawyer who advised her against filing in the 1st place.
All feed back appreciated,
Thanks
Verb