I Need Some Creative Thinkers 4 This One
So here's the situation. I'm tracking this homeowner who has about 5 properties all in very desirable areas. All 1st trust deed defaults no 2nds. A couple of the houses are owned free and clear but in default due to taxes. The homes that aren't owned free and clear have very old notes on them and therefore they have very low LTV's. I went to this guys residence and his wife answered. She was covered in bruises and very guarded about giving out any info. She told me wasn't home at the time. One of the properties is due to go to auction at the end of this month. I'd like to approach the bank about buying the note before it does. He owes 80K on it and its worth 350K. I don't have 80K liquid right now but I'd hate to let that stop me. Any creative ideas out there? I guess worse case scenario I could go low ball the bank and see what happens. I wouldn't be any worse off than I am now and at least I'd be trying and maybe gaining some valuable experience. If anyone has anything to add I sure would welcome the suggestions. -Sarah
It never hurts to ask. The bank may sell the note or they may be well aware of the value of the property. If you have done your due dilligence then you could contact the owner and see about a deal. There are several solutions that leap to mind. 1. If the property is not hugely in arrears then you could offer cash to the seller and cure the deficiency with the lending institution taking the property "Subject To". THis would get you in cheap & without many fees. You could then turn the property over wholesale to an investor, take some of your $ and do the next deal.
If you have comps etc. you should be able to find a "Hard moneyloan". which is fine for awhile until you peddle the property or refinance.
Remember, nothing ventured nothing gained. I would also suggest reading "how to win friends and influence people" I have found these techniques to be very helpful in my business.
Good luck, you dound the mine now get the gold out!
[addsig]
Not sure what your knowledge base is but other than buying the note from the lender and foreclosing yourself you have to deal with the owner for the deed, no exceptions.
There is a downside to buying the note as well. The owner could file bankruptcy and this would stop the foreclosure process. for a time anyway, then a family member or a friend, or drunk off the street could claim a fractional interest in the property and file bankruptcy stalling the process again. I was reading Bronchik (I believe) and he stated there were people that stalled the process for close to a year! If you can do a deal with this owner offer all cash 100k subject to "partner approval" within 7 days (your cat, l;ender banker etc. they don't know who your partner is and you need a weasel clause if you don't have the $$)
Get a hard money loan and you have a house with 250k equity that sould sell quick for a 200k profit.
Good luck! wish I had your problem
[addsig]
I hope this deal goes through for you. I recently had exposure to a seller stalling. Two weeks ago I had an appointment with a guy who called on one of my ads. Went out on a Friday night and locked up the deal for 134K. House worth about 200, he was in foreclosure. I called the bank the following Monday, he had missed 40 payments. What he did was when it got down to the wire he filed bankruptcy. Then about 6 months later again the day it went back to court his wife then filed bankruptcy. That bought them about 16 months. Not sure how it got up to 40, thinking back I should have asked but I figured I should move onto more productive deals.
Hi guys!
Thanks for the responses. I'm not giving up! I'm going to keep trying to get in contact with the homeowner. I may just have to camp outside his house after 5 and before 8 to see when he comes and goes. I have made several attempts to contact him but with no luck. I've sent letters tried the phone but he's not listed,
tried people with the same last name, neighbors, I'm just not getting in front of this guy. But I will continue to try other things. Thanks again for all the input! -Sarah