Need Help!!!!! First Deal!!
I ran across a preforeclosure w/ existing mortgage balance of less than $30k and a judgement of $18k. The owners have agreed to "quit calim" property over to me. This makes it about $50k to satisfy the mortgage and judgement, and the prop has an ARV of $110k or more (min comps). Is this all that's needed! How would the gurus recommend I take over the property?Thanks in advance![ Edited by REI_SIMILAC on Date 01/31/2004 ]
If the owner does not want anything out of the property, then great. Make sure that is all that is owed on the property, then take it over sub-to.
Find a buyer and make 15-20k for a quick sale.
So even if the lender has started the foreclosure process and wih the judgement cloud, still do it sub to?
You can try to take it over sub2 and see if the lender will recast the loan. Otherwise you can make up the back payments.
Ryan J. Schnabel
Make sure the title is CLEAR!
Get some title insurance. You can buy
title insurance without going thru a
formal escrow.
Jeffrey Adam
[addsig]
Thanks you guys! Be patient with me...I need REI Similac...no solid foods yet! I have another question about clear title. By clear title you mean NO judgements or liens. There are judgements and liens on the property but the $50k will clear it right? How does it work? If I pay the judgement and linholders to cancel them and catch up the mortgage...and resume payments...I should be OK? Or if it's not clear now, leave it alone? Thanks
It sounds like you are clear about clear title. Really YOU the buyer want to be aware of all the problems, no suprises. I have bought a property that was behind on taxes a couple of years. I knew this so I factored it into my purchase price. There was also a city "weed lien" but I already knew that.
As long as you know what is there and are prepared for it, you will know what you are getting into. Just remember that after the property is sold and liens, morgages, etc are paid off with a new loan in the future there needs to be plenty in there for you.