Went To Buy A Dresser & Bought A House
I found a property today at a yard sale when I was looking for a dresseer for my daughter. I went to look at the dresser and saw a couple windows boarded up. I asked was was up, and they told me that the owner got killed in a car wreck about 7 months ago, the property is now 6 months in arrears. I talked to the trustee of the estate who was doing the yard sale and she agreed to work with me on a short sale. So I got out a sales contract from the truck, and had her sign it( I guess it's good to always have one handy in the glove box). This property is 3 weeks or so from foreclosure. She told me that their attorney had some foreclosure paperwork for them to sign, I'm assuming that to be a deed in lieu. I told them to hold off, until I can talk to the bank. Heres the situition:
FMV: $95,000
1st: Possibly FHA, $70,000 with Midfirst Bank
2nd: Can a second be FHA?? it's $30,000 with Wells Fargo Bank
Taxes are current and the property needs very little work, siding maybe, and some paint and its good..
What type of offer should I be making with each of them? If it is FHA, would that fall under the same % as buying from HUD at about 87% net or would the 1st go lower? What about the 2nd? can it be FHA as well? What should I offer them?
Rentals in the area rent for $700 month
Thanks for any info,
Tim
P.S. could you also tell me if you can say something like : parties agree that the sales price will be the price negotiated with the lienholders.
or something to that extent or is it better to leave it blank and wirte a figure in?[ Edited by bgn2fsh on Date 07/13/2003 ]
Short sale the 1st for $30k and offer the 2nd $5-8k! Make sure the estate is opened (you might have to pay for it-in louisiana it is $1500 per $20k value)-get a sales agreement 1st-have it recorded-then get ready to wait for the probate court. this is not a overnight thing. GO FOR IT-SOUND GOOD-GO FOR IT!
Can someone explain the way probate may work with this. Also why file the contract at the court house?
Tim
heres more info
1st is FHA for 73,000 with Midland Mortgage
2nd is conventional for $35,000 with Litton Loan
FMV would be around 80,000 "as is" after pulling comps in the area
after a closer inpection I am estimating between 5-7000 in repairs.. but its not repairs that would be necessarry before a move in mostly cosmetic, 1 spot of water damage on the ceiling. Also while I was there I got a 80,000 offer for it.
What should I do?
Tim
[ Edited by bgn2fsh on Date 07/13/2003 ]
bgn2fsh,
"I found a property today at a yard sale when I was looking for a dresseer for my daughter."
IMHO
If I were you .....take the dresser and go home...
Sorry, I don't see a deal here!!
...as always,
GoodInvesting, Rocky
Trying to see what I could work, and learn a little, I leaned foward with this and called teh 1st and 2nd. The 1st held by Mildand Mortgage, was extremly friendly and polite, and they sent a SS package out to the owners. The 2nd held by Litton Loan Servicing, that was a different story. From what I could tell, they act as a debt colelctor, or possibly have non performing liens given to them. There was no record of them being assigned the lien of $35,000. They were ok to talk to, but wouldn't budge off full payment amount. I told them they were teh 2nd, and the 1st was foreclosing, and they would loose out. They said that their computer to value the house at 105k and they could not discount it. I told them 75-80k was at best "as-is" and fully repaired at 85k. He said he had to go by his computer. I asked about a new BPO and he said that they have a BPO done every couple of months, and this one was current. Seems strange for someone who didn't even know the 1st was foreclosing. Anyway, I gained some experience dealing with both homeowner and banks, so all is not lost.
They did say 1 thing thoush. The owner cannot sign a deed in lieu with a second. Is that correct?
Also, if this goes to auction, and I bid and win is teh 2nd wiped out or do they still have to be paid?
Well off to better deals..................
Tim
another update:
I just recieved a call from the deceased owners wife. I told her that the deal would not work. She had talked to her attorney who said Litton Loan probably wouldn't budge, and of course they wouldnt. She said that she would be coming into some cash from a settlement and asked if I knew a way she could make some money with her money. I said of course, Private Lender. I explained to her briefly what would happen, and how her money would be secured, and she said it sounded like a great idea. We are going to set up a joint trust, I guess, so we would both need to sign the checks out of the account. She is afraid that she will blow it if it isnt limited somehow. I guess a joint account would be the way to work it??? Any suggestions on how to set it up?
Anyway,
went to buy a dresser & bought a house
deal fell through, but got a Private Investor out of the deal so all was definately not lost.
Tim[ Edited by bgn2fsh on Date 07/14/2003 ]