What Should I Offer The Owner? Auction Aug 18th
I found a house that is NFS, the auction is Aug 18th. The balance on mortgage is 208k. They also haven’t paid taxes in a year ****Must Reach Senior Investor status before posting URL's***ity Tax lien. Haven’t found out much more will do. I am contacting the owner. Comps go for 375-500. House prob needs 50-100k of work. Time is a big issue auction is in like 2 weeks. What should I make as an offer to this guy? I was thinking 30-50k+ the loan. What options do I have do I have to pay him full amount to pay the mortgage before the auction. Can I get the bank to delay say a week to get full amount of mortgage. Can I take over the mortgage? Thanks for your help.[ Edited by Twinkdogs on Date 08/01/2003 ]
What are my options here? How can I purchase this house before the Auction Date?
Really waiting on some advice before I send my letter to owner.
Thanks
In What state is the ppty?
Different rules in different states.
New York State
Any ideas. I have a letter written to owner of house. Just want to make sure I know how to work these deal before I send it out.
Thanks
Do a full lookup and profile on this before you talk to them. I notice no info about a 2nd or other juniors or taxes and liens. If it needs $50K-$100K and has liens, juniors, or a second that you must assume, you might just kill off your profit. It may be better getting it at the sale when the junior wipes.
I don't know jck about your state's laws or process, I'm from California, just cautioning you to do more research before talking to them.
A true samurai never opens his kimono first...
business is war...
and all those other bits of ancient Japanese warrior-wisdom turned cliche' apply.
-MakoShark
Mako thanks for your help. Just want to pose a hypothetical. The taxes owed are 5k. I have seen that. Say there is no second mortgage or lien. How would I go about getting this deal done within 2 weeks? It wouldn’t be a short sale b/c I would not want to discount the loan. Would I have to pay the owner and then he pays the mortgage off before the Trustee sale, or go direct to the mortgage company? Or get the mortgage signed over to me?
You go knock on the door, introduce yourself and ask the guy to sell you the house for what he owes on it, and from there you negotiate. Get signed permission from him to talk to his lendor about the loan, (you need loan number and contact number,) Call loan officer up tell the guy that your a friend and you want to help out your buddy sam and your going to start paying his bill for him since he's so durn forgetful, and ask for a little forebearance since the bills are so far behind, and from there buy the property subject to taking over his loan. Give the guy 1k to rent uhaul truck, and congrats, you just made 50k.
BTW play hardball, talk about a motivated seller. and at this point, noones going to be able to buy his house through financing with all that work on it. Best bet is buying "subject to" If you dont know what that is, contact john locke here on the boards and have him overnight you his book. It's worth it from everything I've heard.
BTW- Get the deed and a sales agreement signed along with a confirmation that they will indeed allow him to work out payment plan and keep the house and you buy it from him. DO NOT TELL LOAN COMPANY YOUR BUYING IT. and do not pay him anything other than a $10 deposit (when he signs title, and sales contract) until you know loan company is willing to work something out.
good luck,
G
[ Edited by GWmson on Date 08/01/2003 ]
I would wait this one out...
This is a large amount of money to invest in a foreclosure home, especially when your estimate of FMV is so variable.
No matter what state, I have a feeling very few investors would be interested in a property selling for that high of an amount.
Find out what bank holds the foreclosed mortgage and contact their REO dept.
Good Luck
Joe