What's To Stop Me . . .
What's to stop me from offering 50K to a homeowner whose house is valued at 100K?
As I see it, the only thing that may interfere with acceptance of my offer is a better competitive offer. The homeowner will be losing everything in foreclosure so all offers are to be considered.
Am I right? I'm getting ready to make some moves, I just want to make sure that I understand the homeowner's dilemma & options.
Thanks.
Tenmil
I thought you said on an earlier post that the morgage balance was $70k?
You might accidently insult the homeowner with a very low offer, they may or may not want to hear from you again..
[addsig]
Quote:
On 2004-11-06 23:57, MikeT1013 wrote:
You might accidently insult the homeowner with a very low offer, they may or may not want to hear from you again..
Yes . . . but I am right in thinking 50K is far greater than they'd receive if they allow foreclosure to take place.
Quote:
On 2004-11-06 22:34, LynLinz wrote:
Tenmil
I thought you said on an earlier post that the mortgage balance was $70k?
Yes, the homeowner owes 70k. If he forecloses, he walks away with nothing or a small percentage of the equity.
Well the equity is only 30k. So there's no way he'll receive anywhere near the 50k I'm offering. So he comes out ahead by accepting 50K from me before foreclosure happens.
Most likely I'm missing something here. . . please let know what it is. It sounds like you believe I have to offer 70k . . .why?
What you are missing is that the first thing that has to happen is that the lender must be paid.
You are thinking that sellers get to take your 50K and stiff the lender if they sell to you. It is the equity that is theirs IF they can get any at this point.
FMV 100K - sales costs - mortgages(70K+) = what they would get.
I am worse than a newbie on short sales so I am just taking a stab that what you are talking about would be a short. Lender 70K - 50K offer... so it would be the lender whom you would need to be talking with. The sellers would get nothing, just saved from a foreclosure. Others?
Cinvests,
My lightbulb just went on thru reading my other thread! I don't know what I was thinking.
One has to focus on equity only--equity after purchase. From that all things are considered, including how much one will pay the owner. As was said on my other thread, it may be only 5k.
Duh, excuse me for this dull rambling thread.
So, I just noticed that you are local.
Is your find in this area?
If so, it might be worth more than they think, which makes it more of an opportunity.
How did you determine the FMV?
Were you going to keep it or resell it?
Hey, we are all learning something, right? No worries, mate. 8-)
actually, that particular home is not in this area, it's in michigan . . value based on comps in the area.