Think Bank Would Go For This
I would buy a house on an option. The option would be that I would pay $100 a month for a year that would go toward the downpayment. In the mean time I could rehab the house and since I will try to get an assumable mortgage I would then try to sell it even if the year is not up for a profit. The house is owned by the bank from a foreclosure and is not livable in the condition it is in right now. Think it would work? I got this idea from a book called Fortune at Your Feet by A.D. Kessler. I dont really consider this to be a lease option because I would not be living in the place and I could sell it.
Based upon the information that you have provided, no.
Can creative deals be structured with REO? Maybe. But you must realize that the owner in fact wants to liquidate as soon as possible.
$100 per month won't cover their holding costs.
The bank will more than likely turn you down. You have not given us much information. What is the house worth as it sits? What will the FMV of the house be after repairs? What is the bank asking for the house? What will repairs cost?