I'm About To Approach My 1st Sub To Deal.. It's A Great Deal Too(m)
My broker specializes in helping people in foreclosure. She told me about a client of hers that she gave 15k to to help her pay off her debt so her credit scores could improve so she could refinance her. Well, the client did not do the right thing and the bank foreclosed. She tried to sell the house to no avail, and the house went to sheriff's sale. She is now in her redemption period. Once the house becomes REO my broker, who put a 15k lein on the property, loses her 15k because as you all know, all leins get wiped out. I'm planning on finding this homeowner's phone number and calling her. The house last appraised in 2003 for 330,000. She owes 240k plus the 15k to my broker.
If it's doable I would love to attempt this but with it being in the redemption period what does that mean exactly as far as being able to take the property subto? Is it too late?
I am so excited. It seems like at first, I couldn't even get bids in to the banks to get a property because others kept either out bidding me or getting there first, now I may not be doing alot but the ones I do get seem to be great and possibly make a great deal of money.
This will be my first subto so I'm a little nervous.
So any advise on the redemption thing being a problem?
quinn
quinn,
The fat lady already done sang on this one, the bank owns the property, so this would not be a Subject To deal.
John $Cash$ Locke
[addsig]
Yes, I think you misunderstand sub2. How can you take over payments when there are no longer payments. I would work a short sale.
Even better just work to find a buyer--forget short sale--and simply double close.
Buying at 77% of market value isn't acceptable if there is a 6-8% realtor comisssion involved. If there ins't a commission, then I think you have yourself a decent deal.
GOOD LUCK
Drat!!!!
Then she can't possibly sell it to redeem with the bank? What happens doing this period of time, the broker said she could still sell it.
So she's basically living there on borrowed time until the bank evicts her?
Now I'm confused, I thought you could still save your house even after the sheriff's sale.
Thanks John for responding to me
quinn
quinn,
If she is within the redemption period then she would have to pay off the balance owed to the bank wtihin the redemption period time frame to regain ownership.
So yes you can regain ownership if you have the money or can find the money.
John $Cash$ Locke
[addsig]