First Sub To
Hi all.
I have a seller that wants to void foreclosure. the sale is the 13th I have already contacted the bank, heres how it looks
FMV138-145 comps 6months
Amount owed including arrears. 114,396.31
amount to reinstate: 8250. aprox.
reg payments 550 + 12 paymnets of 750 or so to have the loan caught back up..
back taxes 2000 being paid in payments by owner
The owner has several roomamtes and his newest one is the one pushing to stay..
I have considered taking the prop sub to (reinstating with the 8000 ), charging them 1600 a month for twelve months with an optoin to repurchase for 142,000 in 1 year.
the balance should look like about 98-99 after 12 months leaving me with 43-8 or about 35 thousand. this whole deal has made me nervous with taking allthe money I have in my savings to reinstate and I told these folks if they were late on even one payment I was going to sell the property..
Any words of advice about what I may be missing or some other alternantives would be appreciated..
Blessings
Bri
Hi Bri,
I think most people would advise you NOT to let them stay in the property. I’ve done it, but it sketchy at best.
You need to ask yourself how they will be able to afford a higher payment when they’re already in default now. Remember, if they don’t pay you, it will go right back into foreclosure. And if you use all of your cash to reinstate now, you may not have the reserves to reinstate it a second time.
The other thing is to check your state laws about dealing with people in foreclosure. I don’t know what it’s like in PA, but here in CA there’s very stringent laws and requirements. And one mistake can cost an investor dearly.
These are just my initial thoughts. But maybe other can offer a little more insight.
There will be others. Keep on chuckin...