Cali Pre-foreclosure Deal: Need Advice
I need some expert advice on the following California pre-foreclosure deal. I have a couple that must sell their house before going to auction on May 10, 2004. The house is located several hours away in a small town outside Stockton. I have been given this opportunity through a referral. Here are the details..
*FMV: $365K - $375K
*1st owes: $251K (not including default)
*default amount is $18K
*2nd totals: ~$48K
*Repairs: $3K (touch up & paint)
*resale commission is 5% (need an agent due to distance).
*The couple wants some cash to relocate. I just don't see where this would come from.
Is this deal doable?? I would love to hear some veteran REI comments on this.
It's a loser fer sher
Your best bet if it has not gone to sale yet (since I am responding late) is get a prelim, forget about the realtor(save th 18-20K) and negotiate the 2nd to reduce their amount.
These are just a couple of pointer, but there is must more. Call me 310-222-1000
For the record...
Sale date is June 10th.
Total correct encumbrances are as follows...
1st: $271K (includes default)
2nd: $63K (includes default)
I appreciate all wise comments on this pre-foreclosure deal.
This is doable, they aren't going to close with much cash. First of all, have the realtor/comission lower the rate. 5% find somebody to do 4%. Find a realtor that will. Trust me, you will find one willing to do it. They would rather make some money than no money.
List it for fair market, and then substantially drop the price after a week.
If there are buyers there are buyers, and they aren't biting its because your idea of fair market value was to high for them. Keep dropping it. Finally get to a break even point. if that what you have to do. Keep the lien holder informed. They would probabl be willing to work out a pre-foreclosure sale, with the second lien holder getting less than the full amount due. Trust me, i've seen second liend holders happy to just get 100 dollars. The most imporant thing to do is keep an open line of communication with the banks. If it goes through to sheriff sale there will only be more taxes owed etc.
You might even accept an offer for LESS than what they are owed. Ask for sheriff sale dates to be rescheudled etc. Fax the banks copies of offers etc.
Make sure these people are current on their paroperty taxes, sewer and water,and that they didn't forget about any additional "assessements/escrow situations" on their property tax bill. Most likely these people are behind on everything.
These people will have to relocate to an apartment
*FMV: $365K - $375K
*1st owes: $251K (not including default)
*default amount is $18K
*2nd totals: ~$48K
*Repairs: $3K (touch up & paint)
*resale commission is 5% (need an agent due to distance).
*The couple wants some cash to relocate. I just don't see where this would come from.
Is this deal doable?? I would love to hear some veteran REI comments on this.
Cressy,
After the 1st and 2nd (including defaults) and the 3k for fixup and provided you find a realtor to take 4% commission, you have invested $351,600.00 in a property with a fmv of 365k. This also does not take into consideration any closing or holding costs. Tell me--where's the profit??? You need to see what amount you can get the lender to take before you can assure yourself of a profit. Just my opinion.
Dave :-? [ Edited by dealfinder on Date 05/26/2004 ]
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Thank You
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Unique Solutions for Today's Market[ Edited by RE4MeIn2003 on Date 05/26/2004 ]