Where Is The Deal Here?
Received a call from woman who is house is going to sherrif's sale january 18. The bank appraised property at 140K, she owes approx. 104K, and opening bid is 93K. It's in a good neighborhood, and is in decent condition. Taxes and utilities, etc. are paid up. She has been contacted by plenty of investors, but nobody has touched the property. Any ideas? What other information do I need?
Any replies appreciated!!! :-?
You need to know what is the current market value based upon like recently sold properties.
Also keep in mind that the lender will bid up to the loan amount, cost and fees from the foreclosure.
Sheriff sales start the bid at a percentage of the estimated value but the sale will be reserved by the lender for the total amount of their investment.
[addsig]
Thanks for the reply. She currently owes 108,800, plus legal and other costs. She also owes $2,895 in taxes on the property. No other liens or costs that I have found. Current market value listed at 127,500. Comps are from 136-145K. House is in good shape. Would anyone recommend trying to buy over lender and retailing?
Do you have 100k cash or would this be a quick flip no money involved?
Quote:
On 2004-12-23 22:57, rcastell wrote:
Thanks for the reply. She currently owes 108,800, plus legal and other costs. She also owes $2,895 in taxes on the property. No other liens or costs that I have found. Current market value listed at 127,500. Comps are from 136-145K. House is in good shape. Would anyone recommend trying to buy over lender and retailing?
My first thought is that the property is currently listed for 127,500 and comps are 136-145K how can you sell it for more than they are asking and cant sell it.
Another detail is how long has it been on the market?
Let's say the value is asking price 127,500
She currently owes 108,800, plus legal and other costs (You will need to know the payoff amount) so I will just guess a mate around 112,500 and she also owes $2,895 in back taxes. For a total of $115,195 now let's say you buy it for just the amount due we will need to add a realtor fee of $6,900 since it is listed and your customer is unable to pay any amount out of pocket you will also have to pay closing fees and other cost of around $2,300 for a total of $124,395.
I see no deal at this point in a straight cash purchase.
To make it a deal you would have to do a lender short sale or consider a subject to on the property but you only have a gross margin of around 12k. Do you think this is a good deal or would it be better to find more of equity spread?
[addsig]
Comps are in the 140's and FMV is 127? Why is your FMV much lower than comps? At 127k I don't see much margin.
Quote:
On 2004-12-23 22:57, rcastell wrote:
Thanks for the reply. She currently owes 108,800, plus legal and other costs. She also owes $2,895 in taxes on the property. No other liens or costs that I have found. Current market value listed at 127,500. Comps are from 136-145K. House is in good shape. Would anyone recommend trying to buy over lender and retailing?
Thanks for response,
The property is not currently listed. FMV was price listed on realty trac. Bank appraised house at 140k. Don't have anyone to flip it to yet, but will contact lender to see if payment arangement can be made.
On a related note, does anyone know wholesalers/retailers in Cleveland, OH area that are looking for leads. I am just starting and would very much like to work with someone. I am getting a lot of leads, but am unable to work them all yet.
Any response appreciated!
You need to get current comparables of the subject property to determine it's true current value. In my experience bank appraisals always come in much higher than true market value.
Why are you contacting the lender for payment arrangements?
Asking for a buyer on this forum is a NO-NO. Please review the rules!
Looks like you are putting the cart before the horse on this one. I understand you want to deal a deal, but you would be better off getting some more knowledge first.
I will be happy to walk you through this, but you have not even begun to do your homework yet. And after this you must promise to get some training before the next one.
You need comps
You need court house research
You need to inspect the property
This is just to start!
Please do not call the lender for payment arrangements as you still have no details of the property and they will most likely not work with you on this issue!
Have you gotten a release of information?
If you want me to help you on this post and than pm me to let me know you posted.
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JohnMichael,
Sorry, I wasn't soliciting a buyer! I was just looking for someone ( a mentor) who can walk me through this process!
I have done the comps: 136 -145K in the area for recent sales, and I have done research through recorders and auditors office, not sure where else to look.
Any other suggestions?
rcastell
Let's try this one more time, reread the post above, realty trac data are not comps.
Telling me:
I have done the comps: 136 -145K in the area for recent sales, and I have done research through recorders and auditors office, not sure where else to look.
Great son now let me pull out my crystal ball "I need details, do you get the point". My offer to help walk you through the process of this potential deal was simply a good faith offer the help you but you need to follow directions and provide details as my crystal ball is broke.
I also said to PM me when you post, as I will not search a post. Really I just wanted to help and teach you a few things but not being able to follow directions will cause me not to help you!
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I think I'm being misunderstood. The comps I've listed of between 136-145K are not from realty trac, they are actual comps. The fmv (127K) listed is from county auditor. $2,895.50 are owed in taxes, no other liens.
Should I request the payoff amount from lender, or would a short sale be recommended in this case?
Quote:
On 2004-12-29 08:50, rcastell wrote:
I think I'm being misunderstood. The comps I've listed of between 136-145K are not from realty trac, they are actual comps. The fmv (127K) listed is from county auditor. $2,895.50 are owed in taxes, no other liens.
Should I request the payoff amount from lender, or would a short sale be recommended in this case?
Thanks for the PM, yes you should get a payoff so that you will know what is truly owed on the subject property! We will need to know this no matter what direction we go on this.
We will also need to know the amount of $$ repairs and what your customer is expecting out ot this deal.
One vary important issue is do you have funding to do the deal and do you have any buyers if you plan to do a creative deal?
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Thanks Jeff and John,
Jeff,
I considered doing it sub to, but she hasn't made a payment in 2 years. I really don't think there's going to be much there to do that type of deal with. I have listened to John Cash Locke, and Bronckik, LeGrand, and Lowry. I've been gathering lots of info, but now need "to put my hands on it all". I've gathered comps from two sources, and they put the value at 140K, but I will need to get the payoff amount from the bank to make a decision. Thinking a short sale may be only way to go...
John,
I am meeting w/ seller tomorrow to see house/take pix and for her to sign authorization. Should I request payoff amount from mortgage co's atty, or should I request from bank directly (and if so, the loss mitigation dept. or just the regular number). Thinking if I decide to try short sale, get payoff amount from loss mit. when I request short sale package and bpo. Input?
Thanks again to both of you!