FIRST DEAL WOW!!!
Hi all,
Since you have done deals I'm hoping you could help. I have been talking to one man in foreclosure for a month now. He called me to sign the contract two weeks ago and a loan officer got in the way by promising him a loan. He is past getting a loan. He either sells it, goes BK, or lets it goes to sale. The loan officer is trying to move in and get the deal (common in REI?).
His NOS comes this week and his sale date should be in three weeks. He is considering BK which is bad for him and I think he knows that. He also understands that BK will not save the house but he is stalling it.
Currentyly the 1st is $145K with $13K arrears. 2nd is $5500 with $2K arrears. I offered him to cure the loans totaling about $17K when we get there and a sub 2. On top of this I'm offering him $17K cash and help to locate and negotiate a mobile home for him and his family.
The property appraised at $280k but needs some work (not much). I have budgeted a $20k mistake after a $30K rehab budget, buy, hold, and sell cost. I think this is a pretty good offer. It does leave a lot of room for profit but I can't afford to make the mistake on the first one.
He tells me he has talked with other investors but only wants to deal with me because I'm honest (probably warm smoke).
So here are the questions. Is the offer to good or low? If he does sign; I think I can flip it because I test marketed the property and had over 25 calls for it. If it doesn't flip how do I get around the "accelration clause" of the lender (FHA loan).
I should know if this will go by Tuesday but my hunch is he will stall it till the end and I need to be prepared with short notice plans to make the deals. I don't want to miss this one. It is a great deal if I can contract him into it. I know we should not hang our hopes on any one deal but this one would put me in the position to launch this business of REI.
I appreciate any help you provide.
Peter
#1. Bankruptcy is probably a viable option for him to both stop the Sale, and to save his home with a Chapter 13 repayment plan. Of course, he would have to qualify for the Ch13.
#2. Total LTV is less than 60%. Your Seller could easily get a hard money loan.
#3. If you do go into Contract, make sure that you have an accurate title search before you part with a nickel.
Quote:
On 2003-05-05 07:31, TheShortSalePro wrote:
#1. Bankruptcy is probably a viable option for him to both stop the Sale, and to save his home with a Chapter 13 repayment plan. Of course, he would have to qualify for the Ch13.
What are the qualifications? His net monthly income is $1900 and his mortgage is $1520. He is buried.
#2. Total LTV is less than 60%. Your Seller could easily get a hard money loan.
He has tried and no one will touch him?
#3. If you do go into Contract, make sure that you have an accurate title search before you part with a nickel.
Already had a prelim and it has one #2k JDGM.
Thanks for your responses. I learn more here than anywhere else.
IF YOU CAN OBTAINE THE PROPERTY THOU QUICKCLAIM THEN YOU CAN GET A LOAN FOR THE APPRAISED VALUE OR LESS IF FORLESS THEN YOU CAN SELL IT FOR THE APPRAISED LEAVING YOU SOME MONEY IN POCKET DO THE MATH I WOULD KNOW HOW YOU COMEOUT MarcPhelps503@AOL.COM