I Found A Owner Going Through Foreclosure, Now What?
I have a rental property that in the process of finding a renter a applicant said going througha foreclosure. Property bouth in 1999 tor $79k others in area sold recently for $106k and $108K. What do i need to do with the bank/owner to attempt to purchase and Flip this property?
Thanks in Advance
Moving this to Foreclosure.
Assuming (yes I know what it means), your cousing has been renting the house for 4 years, where is his cash reserve for just such crap as this. ?
[addsig]
sell with owner financing which most of time would go for a higher price. Sell with a land contract and have him use the downpayment to get the mortgage up to date.
I also agree should have had reserves for repairs when he first started renting it and even more 4 years latter
BK,
why not offer the 160 which is the 1st. also, do we know which mortgage foreclosed, 1st or 2nd. I say , if the first foreclosed, the 2nd is out of luck
I would off the first and see what happens.
Would this work????
thanks in advance.
[addsig]
Are you wanting to purchase the home and resale after repairs?
Are you wanting to have the (545) purchase the property at 95K and you pick up the difference?
Are you trying to fool the bank into loaning on the after repair value or what?
Exactly what are you trying to do? I am just trying to understand the situation. Are you the realtor, purchaser or what?
Here is what I would do.
1. Get prop under contract for myself for cash at 63K
2. Get buyer to agree to buy and get signed contract from your buyer to buy at 9%% of after repair appraisal that you will provide.
3. Buy prop, fix prop, sell prop to your buyer at preagreed amount (95% of ARV ) and you walk away with money at closing.
This would , of course, tie up your capital or credit until repairs are done.
Any other advice would be welcomed.
[addsig]
I apologize if my previous message was unclear, but the situation is as stated that the buyer wants to pull money out of house at, or right after, close to pay off all other bills and do fixups. The buyer is a relative of mine -- this is not an "investment" deal, but truly a 1st time homebuyer deal. Just happens to be a good deal on an REO and the buyer, who plans to live in the home. So, again - the market value is between $95 - $105k. The bank (current owner) wants $63k. How would you structure the deal so that the buyer can get at least $17k back at, or immediately after, closing? Would this be a seller concession at closing or can you do a refi on a "non-seasoned" loan immediately after close based on value after repairs?
KP,
Have you ever had the bank/lender give you an investor loan based solely on the appraisal of the property? That is the only way I know of getting money out for fix-up before the reapairs are actually done.
Any thoughts?
If you are the holder of the second, you can make the first current and foreclose on the second (or get a Deed in lieu of foreclosure from the Owner). Though not written in law, it is a sound legal principle supported by case law that the holder of the second can pay on the first, and the first cannot call the note due.
[addsig]
I have shorted a house that my business associate held a 2nd on.
I shorted it for enough to make it worth while and hope to make a nice 30K profit on it.
[addsig]
But I want to sell the house...
bbriscoe
If you got a deed in lieu of foreclosure, you would then be the owner of the first, and have the right to sell it if you wished.
LOK, do you have any thought on this, is this correct, or am I just "nuts"