Preforeclosure
a beginning investor in need of advice!!! I have a seller facing foreclosure. They are currently 4800 in arrears with a balance on the mortgage of 52k with 20k in equity. Seller is willing to allow me to contact current lender to assume loan with no-doc option. is this a good deal?:-? I apologize in advance for my lack of knowledge.
Hello from another newbie:
I was curious as to whether the seller is letting you take $ 20,000 equity just for
clearing his back log of $ 4,800 and taking over future payments. If that is the deal, do not hesitate to jump in. To me the deal looks like Pure Gold. Some senior REI may enlighteen us further.
sayana
<IMG SRC="images/forum/smilies/icon_rolleyes.gif"> [ Edited by sayana on Date 08/01/2003 ]
This sounds like a perfect sub2 deal if the numbers are right. Why use your money or credit to get a loan if the seller is that motivated? Offer to take over payments sub2, catch up back payments, find a t/buyer and get some of your money back!!This could work out to be almost a nothing down deal!! Hope this helps....
Prosperous investing,
td
Yes, the seller is willing to sacrifice the 20k equity. I need to know how to get more money from the lender for minor repairs then use the equity for future investments. Thanks for your advice.
If you're going to hang on to the property, then after you acquire it you could refinance for a larger amount enough to pay off first mortgage, cover repairs and possibly some cash for you. Or if the existing mortgage is already at a good interest rate you could get a home equity loan or line of credit and accomplish the same thing.
Good luck and hope this helps.
Steve
Thanks for the good advice. With me being a beginner, can you please explain the sub2 and t/buyer? once again, thanks for your patience on my lack of knowledge. I plan to hold onto the property at least one year to establish a portfolio. this will be my very first purchase as an investor. I do realize that this can be the perfect goldmine to get things started. Thanks again for your advice.