How To Deal With A Bank
HI everyone. I'm a new investorf rom Northern California primarily concentrating on "Sub 2" deals. This morning something came across my desk in the North Carolina area and I'd like to pursue it.
It's a property with a 1.3 million dollar value. It has a first mortgage of 900K and the owner is willing to quit claim me the deed for 25K as he only wants to get out from under it. He is 6 months behind in monthly payment and the payments are huge as it was a high interest no doc loan ($10,500 per month). He is willing to get the bank on the phone in a conference call with me and says they are willing to work with whomever he quit claims the deed to.
Since I don't know to much about short sales I thought perhaps this property could be wholesaled. What I'm struggling with is how to talk to the bank on the deal. I was hoping someone might be able to suggest a way I can get them to hold off doing anything for 90 days and then within those 90 days, I could wholesale the deal since there seems to be a ton of equity in it. The bank seems to be willing to work with the owner as he told they offered him a forbearance agreement, but he opted instead to get out from under it and chose instead to quit claim it.
Any thoughts or interest would be greatly appreciated as this is a little out of my general area of interest but I think it is worth pursuing. I am just struggling a little with what to ask the bank so I don't upset them (short sale) or alientate them.[ Edited by TVitaliano on Date 06/10/2004 ]
congrats. sounds like a winner.
Are you confident of the 1.3M value?
I am trying to get a comp on it now. The appraisal from when the current owner purchased it 2 years ago was 1.2 million, so 1.3 over 2 years of ownership sounds reasonable. Noticed you are here in the Bay Area. Perhaps you'd like to assist in moving it with me?
TVitaliano,
I used to have family in Vallejo. Interesting place (Mare Island was open then).
This might be a great deal or a real dog. The key to a Sub-2 is finding someone who wants to pay enough when they buy from you that it covers the payments. You indicated the loan is not a great one.
If the value really solid? Even if the value is solid you need to find a buyer. I have no idea what area this is in. I can tell it is not a working man's home.
There are some great Sub-2 materials on this site. Consider buying one and reading quickly. Based on the little you have said I am not sure this is the price range you want to start with.
John
[addsig]
John,
I'm not trying to do a "sub2"deal on this one. I was merely commenting before that "sub2" was my primary area of interest. You are correct in that the real key to this deal is moving the property which is why I was asking is anyone on this board could share on how I can appraoch the bank to give me 90 days in order to try and find either a buyer or investor.
can you make the payments during the 90 days?
is this a house or what?
Has the bank already filed foreclosure? At what point in the process are you coming in?
[ Edited by commercialking on Date 06/10/2004 ]
I have not approached the bank yet on whether they would request payments over the 90 day period I'm seeking, so I can't answer your question. I want to see if they will give me 90 and at the very least 60 days of making no payments. It would be my intention during that 60-90 day period, to either flip it an investor or find a buyer for it.
It is a single family home, about 4100 sq. ft., 4BD 3.5BA waterfront property.
The bank has not started foreclosure and it sounds as though they are willing to work with the seller. They already offered him a forbearance agreement for the 6 months of payments he's behind and he's elected to quit claim it instead.
This was one of the reasons I'm even considering trying to do something with it, because the bank seems like they are willing to work wqith someone to make it right.
I am just not sure how to approach the bank, whom I'm scheduled to talk with tomorrow in a conference call with the seller. Any thoughts?