Death And Foreclosure
Am looking at a property which is going to sheriff's sale in 2 weeks. House built in 2000. Immaculate, in new addition, in cul-de-sac. Owner owes 92,000, house appraises at 99,200, taxable market value is 101,500. Owner's husband recently deceased. Would like to create a win-win, but deal seems to skinny and I don't want to come across as a vulture.
I would feel very un-comfortable approaching her on this subject. House is not listed with a realtor. Should I just wait for the sheriff's sale? If anyone has any experience with a similar situation,or any advice,it would be greatly appreciated. Thank you in advance. :-?
Holy cow!!! Now that's an answer. I knew there was an opportunity here to make lemonade out of lemons. I meant no offense or disrespect about the "vulture" comment , just afraid I might be perceived that way by the homeowner initially. You're idea sounds like a good one and very doable. I just hope I can make it work as smoothly as you've made it sound. If this lady will agree to work with me, I would appreciate it if I could e-mail you with any further questions I might/will have. If not, thank you so much for the push-start.
p.s. I have no idea what bubble dancing is, but I don't want to sell ice cream forever either. Thanks again.
The process is simple:
Someone passes away
The personal representative (Executor) is obligated to send notification claims to all creditors
Creditors line up
Assets of estate sold off
Creditors get paid
Attorneys get paid
Court gets paid
Remaining monies go to rightful heirs
Look who is last!
Time Eats Profit
It can take two, sometimes three years or more to settle an estate.
So it's no wonder that the estate gets antsy.
Especially when they see the assets of the estate evaporating.
They'd just like to get their hands on the proceeds from their inheritance and get on with their lives.
You're actually doing them a huge favor by taking the property off their hands. They get their money and their peace of mind.
And you end up with property that you can sell for a significant profit or lease it out for a steady income.
If we as investors do not jump into this arena it's the legal system that wins.
[addsig]
Bill,
Great post, but I got some questions about resident beneficiary part of it. I'm bit confused.
You are selling a partial interest of 30,40 or 50% to the buyer and asking buyer to make payments on a loan which is 92%LTV. Am I correct?
As you know, property prices are up there in California, so having someone make loan payment close to full value in exchange for the 50% of house doesn't sound too atractive to buyer. Also, here in No Cal, the rent is very cheap now, which doesn't help finding buyer.
Please let me know. I am very much interested in what you do, but I feel I am misunderstanding something here.
Thanks in advance.
Bill,
Thank you for your reply.
I wasn't aware that you take such a small amount of down. Few thousand in typical $500K house is only 1%! That is attractive. I thought you were looking for something like 5% down.
I just downloaded your e-book. I am guessing reading this will give me answers to my other questions, like "Is this a Lease/Option?" etc. If I don't find answer, I'll get back with you.
Thank you very much for your time.