Is this a deal or should I walk ?
I have a seller that has called me on a property. He owes 93K @ 850/month payments. The property is worth about 105K-109K (he paid 98K 2 1/2 years ago). He had the house built (manuf home) on a 2 1/2 acre lot with a 1/2 acre pond in the country. He then ran out of money. The yard isn't seeded and the pond isn't finished with stone around it or anything. The stone driveway wan't poured right and has dips and valleys that collect water. He is just over $4000 past due and the bank wants a total of $5600 to bring it current.
He has no money to bring it current or to even contribute.
What are my options ?
Don't know about other people, but to me, this is not a deal worth doing. Using your figures: owes $93k, needs $5k+ to make current, needs $5k+ repairs (low end figure) = $103+ invested. Keep in mind you'll have holding costs/closing costs when you sell, too. All that puts you at your FMV of $105-109k. See any profit? I'm curious, too. When you say Manufactured home, is it a Doublewide or a Jim Walters type peace together?
This could be a good candidate for a short sale, but the experts there will have give you the heads up to that approach.
Another FYI, it least here, DW's with land are usually setup with the loan against the land as a junior lien. Frequently, when the DW lender foreclosures the land lien becomes nul & void. A bank held DW goes here for as little as 50% of value. Hope it helps
Roger
It isn't a double wide. It is a prefab home (although it is just about the same size as a double wide).
This may be a good candidate for a short sale. I would have the homeowner sign a Authorization to Release form and then you can go ahead and contact the LM dept.
If they will consider a short sale, offer them a discounted amount. They may do a BPO and tell you that the amount that you offered is too low. (Try to meet the borker at the property so that you can show them why this property is below value). When they tell you this, now is when you fax them back with the specific and problematic issues with the property and remind that bank that they dont want to own this property. They may counter your offer, but this information may give you grounds for a nice discount, depending upon the type of loan it is.
Best os Success!
BAMZ