Is This A Perfect Sub-To?
I know I have a good deal and I have a few ideas, but I was wondering what approach you guys would make???
This house is worth 250k market value. The owners live in England and the house is vacant. They have the house for sale and they are asking 269k.
The current mortgage owed is at 145k.
THE PROBLEM:
They are scheduled to go to auction due to 10k in back taxes, and then 1 week after that they are scheduled to go to forclosure because of a 12k lien from 3 years of back HOA fees. HOWEVER, I can offer to pay back taxes and HOA lien.
I know they are in a bind and I am sure I can convince them to do something, but what??
Time is a big issue, so I probably cant get a mortgage on it.
I was thinking of offering to take over payments and paying all back taxes and HOA liens, and when the house sells I will get the remainder....sounds good to me? But this is my first sub-to (I am a tax deed investor, not a foreclosure specialist)
What do you guys think?
I am scheduled to preview the house on Wednesday.
What would you do????
Please help me...lol
Thanks so much, Kara
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"I dont work for money, my money works for me."
[addsig]
Offer them whatever makes sense for your business. My experience is that people do not let their nice property go to auction for taxes nor do they let it get foreclosured for HOA. Even with all their troubles, you are giving no indications that they are motivated. Is the house listed with a realtor?
My mode of operation is to pay 70% of the ARV. So if the house is worth 250k, then you offer to pay 175k. You tell them that their "walking money" is 175 minus all liens and judgements. You reinstate the mortgage, bring the HOA and taxes current, and give them their walking money. You will still have quite a bit out of pocket but you hopefully get a house at 70% ARV.