Investors Contract with Realtor
Can somebody tell me the process in doing this. I am about to put in a contract with a seller of a property that has two mortgages. Doing some research at the courthouse it is the first mortgage that is being forclosed upon. Talking with the realtor, it has a second mortgage on the property. (contd) The realtor is basically giving up because he doesn't think he can sell it this close to foreclosure, even though it just started at the courthouse. Anyway How would I be able to purchase this property with the second mortgage hanging around.
There is some slight damage to the back of the house but it is in prime location. How should I proceed??
cyndyb,
You need to do a little more work to have a better idea on this being a good or bad deal.
What do the comps look like?
What are the repair costs?
What is the total of the two loans pending?
What is your purchase price?
How much equity is left between your price and the total loan left?
How much equity is between your price and the estimated value from the comps?
Is this figure greater than $30,000 after repairs?
How does it look to you now?
The second mortgage should get wiped out at foreclosure. This is if you wanted to buy the property at the auction or put a bid on the property at the courthouse.