Taking A Foreclosure Subject To But Still Short Cash
i have a property that seller agreed to sell to me for $125k. and is valued at around $185k she owes the bank around 92k and is around 10k -15k behind on payments. the lady needs 23k to purcase a condo and she has a lien for $9800. for a total of $124,800 i have a hard money lender willing to lend me $120k on the property . or a 2nd of $28,000. i was thinking of paying the bank $10k and working out a deferrment program and taking the 1st mtg of 7.3% subject to. plus i need to give the lady 23k for her condo. and i have to pay a lien of $9800. the total is $42,800 which puts me short of cash in the amount of $14800. does anyone have any ideas. should i option the property and get option fee of $14k? please help :-?
Hi,im new to the investing world,but i wanted to share my thoughts.ask seller would they like to stay in house
with everything paid to current,tell her you can make this www.happen.get loan of 24800.00 from hard lender.
deduct this amount +any interest you have to pay from her selling price to you,lease property to seller.
Does this make since to anyone out there,i welcome feedback from experince http://www.investors.I have not made any
deals of any kind as of yet.still learning.[ Edited by WANNABINVESTOR on Date 12/22/2004 ]
Don't rent back to the current owner. There are LOTS of examples on this board of people that've done this, and gotten burned. If they can't afford the payments now, why would they be able to afford them to you?
Just a couple of thoughts here.
Using the HML gives you $28K to work with.
I would find out asap how much exactly the arrears to the Bank are.
If it's $10K, you have a realistic chance that when you offer 50% ($ 5K) now, they might consider placing the remaining $ 5K in forebearance.
You would have solved your problem right there with the cash you have available.
The Lien of $ 9,800 does not have to be paid until you sell the property, so you don't have to worry about that one now.
Worst case you offer the Bank $ 10K, and you are short just $ 5K. Can you find $ 5K somewhere from someone who would like to make a good return on their money?
There's a couple of assumptions in all of this as the numbers you give don't quite add up.
28 To the Lady plus 92 to the Bank equals 120; she's selling for 125? Where does the extra 5K go to?
Anyway, it seems like a doable deal and congrats.
[addsig]