POSSIBLE FIRST BUY
There is a house soon to be foreclosed on, lender filed and is listed as an REO.
However the current owners are trying to sale it first, ZERO DOWN and the will finance.( Granted im getting a little erry at this point, how do I know they will pay the lender).
They are about $21k behind in payments. It almost 1700 sq.ft., 3bdrm2bth.
Surround sound bulit in living room, covered patio, built in barbecue and hout tub. Back and front yards are beautiful. Needs paint and carpet.
QUESTION: Should I wait until the trustee sale? Or contact them tommorow and get their terms. Possibly get the house and keep it a month or so, then sale. Home is in Arizona, not far from phoenix in an area where home value is constantly growing in value.
Need your advise............... 
Quote:
On 2003-07-10 00:01, AZNEWGUY wrote:
There is a house soon to be foreclosed on, lender filed and is listed as an REO.
However the current owners are trying to sale it first, ZERO DOWN and the will finance.( Granted im getting a little erry at this point, how do I know they will pay the lender).
They are about $21k behind in payments. It almost 1700 sq.ft., 3bdrm2bth.
Surround sound bulit in living room, covered patio, built in barbecue and hout tub. Back and front yards are beautiful. Needs paint and carpet.
QUESTION: Should I wait until the trustee sale? Or contact them tommorow and get their terms. Possibly get the house and keep it a month or so, then sale. Home is in Arizona, not far from phoenix in an area where home value is constantly growing in value.
Need your advise............... <IMG SRC="images/forum/smilies/icon_rolleyes.gif">
I would first start with contacting the mortgage holder and see if you could buy it at a reduced price. Then I would go to the seller and offer my services to save there credit for a fee.
Or if you would like to go ahead with the zero down, just make your checks out to the mortgage company not the sellers. Either way I would get them under contract to secure my position.
Good Luck,
Kyle
You raised a good point I hadnt thought about. If I do take the zero down, but make payments to the lender, could that possibly caused the due on clause.
But then again making the payments to the lender would insure they where recieving them. After all the sellers are in default to begin with.
A beautiful prop. it is! but what are you going to do about the $21k owed....?
What's the house worth? and are there any other liens against it?
Why not get authorization from the seller to speak to the lender about a Forebearance agreement, then take the prop. Subject To the existing financing, place a buyer in the house with the existing payment plan.....when the forebearance is satisfied....say...6 months, you could now keep the monthly spread you initiated with the agreement.....
You'll have to structure your initial contract accordingly....(like "after the forebearance, the interest rate will be......) making it match the monthly you were getting all along.
Don't know if this will work but I think it's worth looking into.
Hope this helps.
Clif
This sounds like a classic short sale doesn't it? What is the property worth? what is their supposed equity?
Get an agreement from the seller and contact the REO company to negotiate a deal!
Never fall in love wit the property, this is just business, if the numbers crunch, then go for it. If you do "subject to you still have to deal with the 21k back fees, you might be able to assume the loan from the lender but should do so less the 21k.
Do the math