Prospect Or Suspect?
I've found a seller asking $269K for a house. A fixed up house with a pool down the street recently went for $315K, but other houses in similar condition to his in the area routinely sell for $215-$250.
He owes $200K on first mortgage. He's moved out. He's paying 2 mortgages. He's also charged $30K to a charge card for repairs and is paying $1100/month on that.
He's also disabled and unable to work on the house anymore. He's trying to sell it himself with assist2sell.
I was thinking to try to take over his $200K mortgage "subject to" when he's roasted in hell long enough.
Does this seem the right course of action?
Sounds like the right track.
I would do a spread sheet to show the losses he is about to take as he waits for his price then sell him on the benefits of getting out now.
Of course it depends on what you are trying to accomplish.
Davev,
Are you saying that he has a $200k first, spent $30k on his credit card and the house is still in need of more money to complete the fixup? Or is the $30k a sufficient amount to complete the fixup and the homeowner is just not physically capable of completeing the repairs himself? I'm just a little confused as your post is not quite clear on this?
Dave
[addsig]
To clarify: owner has a $200K first, sunk $30K in repairs on his credit card, AND the house still needs more repairs (@10K). AND he's physically disabled and can't complete the repairs.
Need advice on how to put together this deal.
So he owes $200K on a house that needs another $10k in work and when finished is worth $215-250K? I always assume the worst in these situations.
You have two choices that I see, (there may be more):
1) get the bank to short the first.
2) get the seller to pay you $30K to take this dog off his hands. Maybe more. But at least he's out and his credit is intact.