What To Do From Here. Exact Steps Please.
Ok here is what i know on this one so far.
1)Its going to forclouser next mon 1/5/03
2) judgment amount of 99,777.92
3) assesed value in 2002 of 79,400$ (tax assesment)
4) house next door total rehab in 2001 wnet from 44000$ to 180000$
5) I think that prob can filp and sell fro 125000+
what should i do
approace the owners with sub 2
or try to get at auction?
At this piont, I would wait and go to auction. Theres not a lot of time to work with this one. The setback here will be you will have to probably compete for the property, but no matter, provided you win, sounds like a fairly good deal! Just my 2 cents worth.
Make sure you've got some real solid comps on the 180K FMV after repairs.
Then just work the numbers.
---Cost of rehab
---Amount needed to pay the back-payments, as you don't have time to negotiate much of anything with the lender, etc.
How motivated is the Seller?
All things being equal, I assume that you have access to the cash, as you'd be willing to purchase it at auction?
If the numbers really make sense, an all-cash offer with a quick closing might be the way to go. You're well below 65% of FMV (180K plus?), so a HMLender also comes into the picture.
If you have the knowhow and know your paperwork, you can definitely do the quick-and-esay S-2 with a Trust.
Less out-of-pocket; better ROI.
But...make sure your comps are solid, Title is no problem, rehab numbers are reasonable and that you can sell the property quickly. Flip makes sense, if your numbers make it possible.
I'm making a lot of assumptions here; this is not the type of deal you'd want to do as an inexperienced investor.
Good luck.
[addsig]
I would find out the actual value of the property first. Tax Assessor's value tend to be less than the actual value of the property. Try this site to run some quick comps http://www.bankofamerica.com/loansandhomes/index.cfm?template=hc_home_worth
However, you still need to due your due diligence to make sure your comps are accurate, check for liens, judgements, etc... Next, I would definitely try to help the homeowners out with their situation NOW and not wait until the sale date. If the homeowners cooperate you can possibly try to workout a forebearance (tacking the payments in arrears to the backside of the loan) with the lender or do a loan modification. However, in this case and like all foreclosures time is definitely of the essence. You really need to contact owners asap and get a feel for how motivated they are to resolve this sensitive issue. Hope this helps!
Quote:
On 2003-12-29 14:54, pejames wrote:
At this piont, I would wait and go to auction. Theres not a lot of time to work with this one. The setback here will be you will have to probably compete for the property, but no matter, provided you win, sounds like a fairly good deal! Just my 2 cents worth.
Pejames -
Hi nice to meet you! Just FYI I have helped save people from foreclosure with as little time as 1 day before the sale. How do you know if you can help slowdown or stop the foreclosure if you never try? I believe its better to try and fail then to do nothing at all. Through my experience in working with pre-foreclosures I have found that banks typically don't want to foreclose on properties and usually like to workout something with the homeowners for an amicable solution. IMO its easier and less costly to purchase a property that's in preforeclosure than it is to purchase a property at the sale where you could run into a bidding war with some deep-pocket competitors..maybe even the Lender of the defaulted loan. Just my 2 cents worth.