Without more specific details my analysis would go like this: These guys got $32,000 behind (the back payments and the taxes) before you were involved. At that time their cost basis in the house was $xxx. Now you come along and want to make a profit so now their cost basis is going to be $xxx plus your profit. If they couldn't capitalize and stay current on the prior basis how are they going to stay current on the new, higher basis?
Now there may be valid answers to that question (change in job status, end of some other expense) but I'd want to be pretty clear about what those answers are before I'd consider that deal.
A couple of potential problems here. First, if they’re behind $13,000 in payments, it appears they haven’t paid ANYTHING in over a year. And if they’re also behind $19,000 in taxes, how many years is that? Maybe they used to pay $900 a month – but not any more. So obviously, they really can’t afford $900 a month.
Second problem, many lenders will want to see 6-12 months of title seasoning before they’ll do any kind of cash-out refi or equity line.
I know most of the experts recommend never letting someone stay in their house. I’ve done it, but this might well be a good example of why you shouldn’t.
Sounds pretty risky to me. But maybe someone else will come up with a different solution for you.
Without more specific details my analysis would go like this: These guys got $32,000 behind (the back payments and the taxes) before you were involved. At that time their cost basis in the house was $xxx. Now you come along and want to make a profit so now their cost basis is going to be $xxx plus your profit. If they couldn't capitalize and stay current on the prior basis how are they going to stay current on the new, higher basis?
Now there may be valid answers to that question (change in job status, end of some other expense) but I'd want to be pretty clear about what those answers are before I'd consider that deal.
Greetings keedaah,
A couple of potential problems here. First, if they’re behind $13,000 in payments, it appears they haven’t paid ANYTHING in over a year. And if they’re also behind $19,000 in taxes, how many years is that? Maybe they used to pay $900 a month – but not any more. So obviously, they really can’t afford $900 a month.
Second problem, many lenders will want to see 6-12 months of title seasoning before they’ll do any kind of cash-out refi or equity line.
I know most of the experts recommend never letting someone stay in their house. I’ve done it, but this might well be a good example of why you shouldn’t.
Sounds pretty risky to me. But maybe someone else will come up with a different solution for you.
HTH
What for the auction (if non-judical foreclosure) or something I have been researching.
Purchase the note from the holder of the 1st .
Looked at a deal here from the note would cost me $X, the ltv was <80%, and it was in a great neighborhood. (and the note rate was 12%).