Need Help On This Deal Fast...
I have a contract on a townhouse that is in foreclosure on a second mortgage for approximately 30K . First mortgage is already paid off and the property needs no rehab work done to it (he used the property as a vacation home for his family and it's been vacant for 2 years now. There is a HOA lien on the property for $700 on the property. The property is valued at 80K according to the comps that were done. The homeowner wants $5000 out of the deal cash and the peace of mind knowing that he doesn't have a foreclosure on his credit (VERY MOTIVATED SELLER). I already have a buyer for the property at 65K and I wanted to get advise on how to best structure the deal so that everyone gets paid accordingly. Is this a candidate for a double closing or should I take a hard money loan on the property and pay the owner off that way and deal directly with my buyer?
Any advise is appreciated. I have to close on this deal fast because the owner is strapped for cash and would like to get paid ASAP if he could...
I agree with JeffreyAdam above that the best way to do this deal is to take the home subject to the existing financing. You need to close this deal fast or else risk the owner going to another buyer.
If the owner really wants to close quickly, he shouldn't have a problem with you taking the property "subject to". Explain that since you will be making payments on the loan in his name, you will actually be improving his credit rating the more payments you make.
I would not try for a double close. There is too much risk in something going wrong and messing up the sale.
Good Luck