QUICK Advice Needed!!
I need quick help. I finally decided to quit reading aand put everything I have learned into action. Long story short, I researched floreclosures at courthouse and mailed just a handful of letters. The next day I received a response (I was shocked). Anyway the owner basically is ready to walk from her house and wanted to see how I could help her at least get some funds for moving expenses and funds to get into an www.apt.or duplex. Anyway, her house in appraised at $142,000 ,balance owed is $105,000. She is behind $15,000 in pymts. House forecloses August 3rd. Is this a deal to do a short sale on or what do I do to help her get some money. Subject to is really not an option is it seeing she is $15,000 in the hole. I just need a recommendation on what to offer her. She will sign whatever I need her to in order to sell her home. I need HELP or should I just let the deal pass. I have no funds at all-just starting out. Bad credit and no money really yet. Only repairs needed are to put tile on floor in kitchen area. House 10 years old and in great neighborhood. Oops forgot to mention she listed with a realtor but doesn't want the offer becuase she will get ZERO$$. Can she not use realtor or will I now end up paying those fees if I do the deal. I am located ij Texas. Thanks.
512-818-6199
I'm not sure how much is owed. You state the mortgage loan balance is $105,000 but further state that she is $15,000 in arrears.
What's the payoff, including unpaid property taxes, and foreclosure costs?
[addsig]
if the owner has/had listed with a realtor she is obligated to give the realtor the agreed upon comm. unless she had a clause stating that she could sell which i doubt..........kenmax
There may be a cancelation clause in the listing agreement ask for a copy. As long as the realtor didn't intrudce you to the property it is possible that just a small fee could be paid to the realtor.
As shortsalepro says, get the exact payoff on the 1st - make sure she hasn;t recorded any additional liens on the property by talking to the county recorder. you can get and "authoirization to release information" signed by the seller and talk directly with the bank.
Since you have no money and bad credit; you;ll have a tougher time getting started - so you'll probably have to do a deal or 2 that most others would pass on so you can get a record fro your self and hopefully make a buck.
With the release for information; you can start negotiating with the bank to spread out the back payments over 6 months or so - or at least delay the sale 2-3 months within which time you might be able to flip the property.
My only question as to the viability of this deal, is that if the house is currently on the market, why are you going to be able to sell it when she can;t get an acceptabel offer --- i think your 142k value ## might be a little high which would probably make this a deal to pass on (based on payoff being 105+15=120 owed), maybe FMV is only 135 with 5 for repairs and 7 k for a realtor selling comission you MIGHT make 3 k - better than nothing, but if you have to make 2 months of payments you would then start losing money very quickly.
good luck!
Thanks everyone for your advice. The owners payoff is $105,000 to the bank, that includes late fees and everything. She just cancelled her agreement with realtor on this morning. Property is free of any liens. She is behind $15,000 on payments already. I will be really thinking about this deal as I must act quickly if at all! I want to try my hand at perhaps flipping it or short sale but I'll sleep on it tonite. All suggestions on next move to make is welcome.