My Mom Needs Advice
My mom refinanced her house and is struggling to make the payments...she isnt in foreclosure....Yet.
We have called a few we buy houses people, but no luck, only 1 came out to the house, and didnt call back.
Her house is in a prime area of Miami.
The mortgage is 330k
Payments are $2600, one behind...
2 appraisels....485k and 515k
House needs 2 new bathrooms and some minor updating but has a new roof, drive way, electrical and kitchen...
The market is slow here, and only 6 people in the past year have come to look at the house since she listed it for sale...
There is over 150k in equity, so, she doesnt want to walk away with nothing, but she would be willing to work out a fair deal for both parties.
ANY SUGGESTIONS FOR HER?
Why arent the "we buy" people biting our bait???
the house is on my properties for sale....thank you all for any advice....
Hello- If you still need assistance ......Feel free to contact me....
How many payments were over 30 days late? 60? 90? She may be able to refinance with an Option Arm to give her a really low payment which she can afford until the house sells or the market changes or she can afford the full payment. She could also look at getting a home equity loan and use that to pay the portion she cannot afford.
I must advise that these are temporary solutions and because they will increase the payoff she owes and if she can sell when the equity is gone it will be harder to avoid foreclosure. At least this will help her through these times and hope that the market changes.
Some questions that will need to be answered are what is her credit score and can she go full-doc?
I have someone that can help her. Email me if you like.[ Edited by moonstruckprincessa on Date 03/30/2007 ]
If you haven’t already, I would suggest listing with a good Realtor, offer 4% to the selling agent, offer to carry-back financing for the buyer, offer to pay the buyer’s closing costs, etc., etc.
The point is to get as much exposure as possible and to come up with some strong incentives to get people to consider her house first.
While the market may be slow, houses are still selling and you just want to make sure you’re mother’s is one of them.
Just my 2¢
I agree with Mcole... I think you will net out better retailing with strong incentives. You should come out better than going the wholesale route. See if you can get a wholesaler friend to give you a standing offer in case you cannot move it.
One incentive you can do is not only pay for the buyers closing costs, but buy down the interest rate as well. By doing this, you might be able to get a higher price while the buyer gets a lower payment.
I can share with you what the savings and costs will be. I am a licensed mortgage broker in Florida so I would be happy to help your buyer with their financing. People buy on monthly payments so buying down the rate will help buyers be able to better afford her house versus other houses on the market.
As others have posted, offering the buyers agent a higher commission will help the house sell faster. You can list it on the mls using www.398mls.com which costs as $198-398. You can then offer the buyer agent 4-5% which is very attractive to them. Getting a GOOD realtor to sell the house might be worth it if they market the house (not just list it). However, www.398mls.com is a cheaper alternative.
A reverse mortgage would only work if she is over 62 years old. This would be a great tool, though, if she is over 62 years old. Otherwise she could try the Option Arm which would give her a lower payment and hopefully give enough time for the market to heal.
sell the property, the loan option prob wont work. not enough equity in the prop for reverse loan. option arms dont happen with mortgage lates except in EXTREME conditions. possibly do a refi to take cash out on it to make the payments as a bandiad, but can cost a lot. let me know if you need some creative options
1) Miami is slow
2) She cant refi if she cant make her payment now.
3) The Realtor doesnt matter, its the price, she needs to price it with little or no profit.
4) Keep in mind, if you want to make 100K, you will loose 200K. KNow this.......
Have your Mom call her bank and ask if she qualifies for a remodification or forbearance.... or maybe if you have a great credit score you can do a refinance for your mother at a lower payment....good luck
Whether you are listing it as cash or financed depends on how the HML does the dispersement. In most coases it is considered financing if he will be sending over mortgage papers to the closing.
If he is going to give you cash then it is cash.
For the earnest, I never pay more than $1K. Big ticket deposits make me nervous. Look at the offer documents if you used thier forms. It should tell you how much the earnest money should be
There is no rule as to how much deposit you need to make. Obviously, a bigger deposit means you are more serious and with identical offers, I, as a seller, would accept the one with a bigger deposit.
I just got an offer accepted of $118k cash and only put a $500 deposit.
BTW, what Hard Money Lender are you using?
As said already, there is no Requirement for how much earnest money is put down. I usually do $10 when working with a seller directly. When agents get involved they want $500 or $1k. That is what they are used to dealing with for their deals. There is no law or statute that says how much you have to put up.
I would be completely honest with the agent and tell them that you are getting financing from a lender who "specializes" on homes that need repairs and that the contract is NOT contingent on financing. This would make the agent and the seller more comfortable. Then let them know that you will be putting up an offer with $_____ as earnest money. Let them know how much you are putting up. Dont let them tell you how much you have to put up. It is YOUR offer.
When I am going to a private lender, mine will cut me a check directly or wire the money to the title company. I usually do the deed of trust with a real estate attorney later in the day or the next day directly with the lender. In this case, I say that it is a cash transaction.