Hello, Have A Potential Foreclosure Deal Here.
Dealing directly with bank on it. Too much financing neded to buy it. Is there a way to turn around without actually taking a mortgage on the property? Please your suggestions. I am new. Thank you.
sorry, I just saw your entry.
Yes, here is what I have done before.
I found a house in foreclosure for these numbers:
1st mtg. 100K
2nd mtg 45K
repairs needed: 10K
ARV: 165K
Advertised for sale owner finance 20K down.
Found buyer, they purchased on agreement for deed for 170K, put 20 down and I wrote a note for 150K.
They had to do the repairs.
I negotiated a payoff of the second for 10K, then I reinstated the first for 10K, and now I make the original mortgage payment when the pay me, and pocket the difference.
this year they will refinance and cash me out.
It can be done, good luck.
Wow sunre....great advice.
How did you negotiate the 2nd mortgage?
And was it held with a bank or was it private finance.
Thanks in advance.
Denny
It was held by Homecomings Financial.
What actually happened was they loss mit. said, the house value was 110K based on the tax value. I just about filled my pantaloons. And, they knew that the first was owed 100K, so they said they would take 22K. I told them that would put the property value upside down, and with all the foreclosure expenses I am already at 110K right now, and it needed another 10K in repairs. So, I told them if we could come to an agreement of 10K, I would close the deal, and just have to hold onto the house until the market appreciated enough for me to sell it. They agreed about five minutes later.
I did another deal with them on another house. Here are the numbers:
Owed: 72K
Repairs: 20K
ARV: 120K
They settled for 59K and the house sold for 120K.
Some deals with them have not gone through though. It really depends on the loss mit., and what numbers you can convince them of.
Good luck.