1st Deal Please Help With Creative Offer Ideas
I've talked to a motivated seller. What a treat that was! Over the phone I thought he was satan himself. He got better when I showed up however. Here's the scoop. He has 2 morgatges. The first for 57,000/current. The second for 49,000.The second is in default and he has a lis pendens filed against. He says they won't except his money unless it's in full?? The property has an arv of about 275,000 and really only needs about 15-20,000 to make nice.(all cosmetic).
Both loans are variable and the 2nd had a balloon which popped. That brings us www.here.The lis pendens was served about a month ago. I really would rather not take subject 2 a variable loan unless I knew it was for a very short time. But there is a possibilty I might want to buy the house for my family it has 4 bedrooms and we need to upgrade and its in town, so maybe then I could take subject 2 untill I got another loan. I have about 50 grand to work with of my own. So I'll be needing atleast some hard money. I've talked to a few lenders.
I'm thinking of one offer straight cash. And some others more creative. What would YOU DO? I'm looking for ideas. I want to move fast. Thank you!! :-o
I'm thinking maybe a straight cash offer around 140,000 and paying off the2nd(49,000). Maybe another with me paying him 50,000, paying off the 2nd(49,000) and have him holding a note for 100,000.
I would suggest buying the home for 157K. Doing a prommissory note for him to owe you 50K and notify the title company. When it closes your new loan is for 157K. The sellers proceeds are as follows 107K pays off the first and second and 50K pays off your prommissory note. Even though the home is in default the banks don't care if your clients makes money as long as they are paid in full.
I don't think either bank will care about him making a profit. They are 2 different banks and I'm gonna pay the one in default(the 2nd) totally off. Will the bank in 1st position file a lein when they find out the 2nd has????Would I be able to take the 1st subject 2. It is current . He is only defaulting on his 2nd.
Dhoooaatt!!!!! ( as homer simpson would say). Lost the deal to a cash buyer. Cash is power!!!!! I must find private lenders. Oh well!! My day WILL come dog nabit.
You will be better served to have a normal closing so that the deed is transferred and recorded
And yes you should buy title insurance to have some form of protection from any future claim on the property.
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