Is This A Deal Or Should I Walk?
I got a call from a motivated seller 2 days ago. His brother is in jail for a few years and needs to sell his brothers house. (He has power of attorney to do so.) FMV is 115k 3/2 1050sqft. house has been listed with a "friend" who is a realtor- for 60 days.(at 115k) There was a recent offer and home inspection but they walked. Owner Said that he was going to talk to the listing agent and cancel listing.
He had some renters in it covering the morg. but he had to kick them out.
1rst mort. 87k 2nd is 20k bringing the grand total to 107k. Payments on the loans are $800 and $300. $1100. Rent in this area is in the range of $800-$1000. Oh... I almost forgot the lean for $1100 on the house from the Bail bondsman. House needs about 2k in light repairs. He just wants out and is getting nervous about paying his mortgage and his brothers. Does anyone see any profit in this?
This looks like it could be a potential short sale? Get the 1st and 2nd to discount the liens. I have started to look into this technique but have not tried it yet. Otherwise there isn't a lot of equity to work with and it seems slim as a rental.
If you take the property for what is owed, pay the bail bondman lien off, and your $2K estimated repairs you are at approx $110K. The real estate agent has beeen trying to sell it for $115K so he can get a commission and he hasn't been successful. Now take into consideration your closing, holding, selling costs and you have a loser on your hands.
I'm with pushcart, if you aren't successful doing a short sale on this one, you need to pass. Good Luck.
Dave
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"Opportunity is missed by most people because it is dressed in overalls and looks like work." (Thomas A. Edison)[ Edited by dealfinder on Date 06/24/2004 ]