Newbie Needs Help With Possible Deal
Hey folks,
I'm a newbie (I see you rolling your eyes ) who needs some advice on a possible deal.
Lady called with a house recently appraised at $129,000. She owes $80,000 on the 1st with Washington Mutual and $15,000 on the 2nd with Countrywide. She is 3 months behind on the first ($745/month = $2,235 total) and 2 years behind on the 2nd ($152/month = $4,000 incl penalties).
The house needs about $10,000 in repairs. The owner says she just wants to be done with the property and needs $1,500 - $2,000 moving money.
My wife and I are going to meet with her this week. What do you suggest we do, if anything, with this property?
Can I make up the back payments on the 1st and take it subject-to, and then try to short the 2nd, pay it off, and then sell the house quickly at a discount? As you can probably tell, I don't know much...but I'm teachable.
Thanks so much for your time, patience, and advice in advance.
Regards,
JohnMP
The first mortgagee will be paid in full, sooner or later. No short there. Get the house under contract (control) and then seek to purchase the second mortgage at a steep discount, via an assignment... then short it yourself.
If you need help with the structure and process... PM me.[ Edited by TheShortSalePro on Date 01/01/2004 ]
You actually have the process pretty much down. I would only offer the tennant 1k for legal reasons, but if you see a few useful things around the house, you could offer to buy them for 500-1k extra.
Think about it...If you were a bank would you like to know that your homeowner is shorting your note, and also receiving compensation? You woul feel that money is yours.
Also, you may have very little out of pocket on this purchase. Possibly consider hanging on to it, or lease optioning it with 5-10k down. In one year you could refi at 90% LTV and have a nice payoff.
Good luck!
[addsig]