Hud 1 statement?
I've got a house under contract and i'm doing a discount with the mortgage company. I've got the repair costs along with pictures BUT, I'm a little fuzzy on the costs that it would take the morgtgage co. to foreclose on the home. My question is What cost would they incure and what percentage of the resale price would the cost be. Im putting together a net sheet for them and this is where im stuck at the moment. Thanks...... Domingo--- great board. lots of good stuff
Foreclosure costs usually run from $3K-$5K depending on several factors; ei. # of months delinquent, Legal fees, remarketing expenses, property tax liability, insurance, appraisal, BPO (Broker's Professional Opinion), RE Agent Commisions, Sheriff's Deed, Title Transfer, Revenue Stamps, Bankruptcy filed by the Borrower(and # of BK filed to stop it previously)
All of the above doesn't include current mkt values in depressed areas, REPAIRS for neglected/deferred, VANDALIZED, VACANT run-down properties.
Use all of the above Domingo to paint the WORST CASE SCENARIO (BEST CASE for YOU) to VALIDATE & ACCEPT YOUR LOW BALL OFFERS!
I make reduced Offers DAILY! Lots of REJECTS and more than a few TAKE THIS LOSER PLEASE...I'll even PAY YOU TO DO IT!
That's right, I had a deal back from September where I got $3,700 in taxes paid by the bank when I bought! (time the closing just right)!
If I'd closed earlier like they wanted, I would have had to eat almost $4K B4 I made a penny on the home. BTW I sold it 3 Weeks later to a contractor for a tidy $6800 cash profit!
You can generate these types of deals too!
Just need access to the cash or and investor with cash and a SOLID MKTG. SYSTEM of Prospective BUYERS for your WHOLESALE and/or RETAIL Deals!
Much Success,
Derrick Ali
[addsig]
Thanks Derrick!! Made a few calls and with your responce I got it now. like my wife keeps atellin me. When you dont know something ASK! because its the dummer of the 2 that doesn't