First Deal- Home In Fc 2 Years - Have Buyer - Help!
I have a customer that wants sell me his house. His house is worth about $180K - $210K. ( I am going to have it appraised). His mortgage is $152K. He has been in foreclosure for 2 years. Due to a law suit with the mortgage company which staled the foreclosure.
All taxes have been paid and there are no leins on the property. He wants me to short sale his property, then sell it to his father. The seller also ownes/owned a title company.
My first in-person meeting is tomorrow morning.
Other than inspecting the house, and getting a "Authorization to Release Information" form, what else should I bring / look for?
Would a "Subject To" be the best method?
Thanks in advance. :-?
Ok, I didn't get a response. :-(
But this is how the deal may go through:
I have the son sell to the father and create a mortgage and sell the note. This way I stay out of it and make $ in the creation of the mortgage.
Thanks B.S.
Umm
This seems on the edge of legality to me. To work a short you must state that you are not related to the seller, etc. If you knowingly plan to sell to his father, you might be defrauding the lender. Not worth going to jail over.
[addsig]
I apologize, I should of made my self more clear. Not a short sale. The seller would sell directly to his father. His father would get his own financing, not the existing financing.
Am I overlooking something?
Thanks
Quote:
On 2004-09-01 16:12, telemon wrote:
Umm
This seems on the edge of legality to me. To work a short you must state that you are not related to the seller, etc. If you knowingly plan to sell to his father, you might be defrauding the lender. Not worth going to jail over.
If the seller is selling directly to his father, how do you get involved(and get paid?)
From creating a mortgage and selling the mortgage note to a private investor. Once I complete the transaction, I will give specifics.
:-D [ Edited by lumaflux on Date 09/07/2004 ]
From my experience you typically get about 90% of face value for a note you create. I don't see the modivation that the seller needs you involved other than a possible shaky credit son.
Please post more details. I am familair with the process but still not sure of your question. Thanks
Still confused a bit about this. Unless you go through one of the companies that do simultaneous closings, you'll need money to fund the note and pay off the foreclosing bank. I know know of one company that does such things, but the interest rate on the notes are fairly high.