Need Help On Possible First Deal...
Hi,
Someone came to me with this one to possibly partner up on. Here's the specifics:
Owes: $127k
Worth: $200k
Monthly: $1100 @ 10.8 ARM
Arrears: 4 months and $2000 back taxes
She wants to stay in her home that she's lived in for 30 years. She is in this situation because she was out of a job for 6 months (teacher) but now is working again. She can't afford to make up the back payments though, even with the offer the mortgage co gave her.
The investor that came to me with this one proposes the following:
Have her deed her property over to us.
Bring mortgage current and refi @ %7 (is this possible if not pri residence?) on $160k which would pull out about $25k for us.
New mortgage + taxes would be about $1230.
Enter into a lease option with current owner for that amount monthly for 24 months at $160-170k.
How does this sound? Any other suggestions on this one? The owner really wants to stay in this house. Would we run into any extra problems with this, say if we needed to evict....maybe it's harder because this was her house from the start?
How do we have her deed us property? Quick claim...subject to with warranty deed??
How much would this cost us in closing fees, etc..
Thanks!!!
Look around the message boards on this one. It has been said over and over again, but there are huge red flags in this one
for instance
Seasoning of title prior to refi
and by letting her stay:
Violation of Foreclosure Laws
Predatory Lending