Is This A Good Deal?
I have this place that the owners are deceased and the kids don't want anything to do with. Payments are 4 months in arrears and the bank is foreclosing.
The place comps out at about $100K. The bank is owed approx $60-65K and there's an $8K lien on it. The bank has mentioned one of the kids as a defedant in the foreclosure suit. The bank now transferred all correspondence to the attorney's office which is located locally.
I spoke to the paralegal handling the case and he won't do a shortsale because he says (and he's right) that there's approx $40k in equity. The place needs about $15k of TLC. I need ideas of how to approach the structuring of this deal. Is it best to re-instate and buy the place sub. to? Or try to do a shortsale? Any ideas would help. Thanks in advance.
$40k in equity minus 15k rehab gives you $25k to pay commissions to resell, closing costs, back property taxes, min 3-6months (depending on your local market) carrying costs of the mortgage while fixing it & holding during resale. I think this is too thin of a profit to be interesting unless I am missing something.
I just want to wholesale the deal - the market down here is on fire - I mean red hot. In that area, a house like that doesn't spend a week on the market (no gurantees of course but trends speak for themselves).
Any other ideas?