What Would YOU Offer??
I got a call, from a motivated distressed homeowner. She wants to get rid of a house they bought 1 yr ago. They put 20k down, and would consider subject-2 if they can get some money out. Its in the Phoenix market so house values have been flat in this area. Here are the specs:
balance on loan: 182K
no second
comps: 205K roughly
sq. ft: 3159 - 4bd/3ba/3 car garage
mortgage: 1280(fixed) roughly and current
built: 2002
It's still in excellent shape and in a middle class neighbor hood. They are still building larger homes behind it that start between 190K-210K. I'm not sure if I should get involved. Not sure I should offer anything. Not sure of what the exit strategy is since these larger houses are harder to move and so many other choices for consumers. In this part of Phoenix, there are plenty of new homes for rent starting at 1100, and plenty of homes on the market in this area. What would you guys offer/do?
Energy,
Reality If they are building bigger and newer homes in the area for 210k. It is probably worth less than 205k. This is just an observation. So let's take 200k for a base #.
FMV 200K
REA 12K
CC 6K
Mortgage 182K
Equity 0
Offer her 1K and show here the #'s
If she has any objections she is probably unrealistic with her expectations.
Hi,
The deal seems to be too skinny. One of the rei gurus sayings -"... cant feed the family on skinny deals..." Sometimes just better to walk away.
Sarge