Some Thoughts On This
Hi All,
Got a call from a lady today saying that she got a notice for foreclosure. She is 6 months behind which is a total of $4,368. The only thing I am familiar with is L/O's. Could use some advice on what I may be able to offer her.
FMV 100-120K
Pmt(PITI) 728
HOA 120.00 a month
Pmt's in arrears(6mo)$4,368
Owes 82K
Its a 3/2 with garage
1370-SF
Needs no repairs except cleanup
Just wondering if I could do anything with this or should I leave it alone.
Thanks Bill(FL)
The biggest questions you'll need to answer on this deal is
a) can you afford to pay the $4K+ to reinstate the loan?
And
b) will the property rent for at least a $1000/month?
Also, keep in mind that if you're planning to 'sell' on a L/O, then realisticly expect only 1-3% on an option deposit (and usually closer to 1%), so you will not get your intitial investment back immediately. Would that be alright with you?
Roger
Hi Roger,
Thanks for responding to my question. Im cash poor and therefore don't have any cash to catch up her payments. I was just going to let it go but I wondered about this...If I were to get a straight option,for 90days,contingent on finding a buyer and get an option for "amount of mortgage at closing" would I be able to then sell my option to another investor, for say 2k ?
Bill (Fl.)
Bill,
What city are you in?
td
Im in Orlando..Hiawassee area
To be a successful investor, you need to offer win-win scenerios. A straight option would not be a good idea for the seller.
That would lock her property up, preventing her from selling it to someone else, should she find a buyer before you.
Without the funds to deal, it would be better to birddog the property and collect your fee thru the investor.
I have, however, got sellers to agree to an option by putting in a line stating that I will sell back my option to the seller at any time prior to a formal exercise, for $xxx.xx amount. If they find another buyer, then they can buy you out, and sell it.
If you try that, make sure to have an attorney review it for it's legality within your state's laws.
Roger