Property in default
I have a potential deal on a property where the current owner is in default by about 6 months. The total of payments to make this up is approximately $4000. An additional $1500 dollars in fees are due to bring the loan current. If the loan were current the balance would be approximately $100,000. If I buy the home for $125,000, how much would the current owner receive?
locksmith,
Is this property about to be sold at auction? It sounds like you will have to come up with $5500 to bring it current. How motivated is the seller? How much you give them for it depends on their situation. It seems like $125,000 is way too much. Based on the sellers situation, you can decide how much they get. But first you need to know your fixup, marketing and holding costs are and the price you can sell it for. What is you exit strategy?
A little more information and we can help you better. Good job on gettin out there!
Locksmith, this is a perfect candidate for a short sale. The seller would get nothing, but you could save his credit. If you would like a partner, please let me know! My e-mail address is RMelton552@aol.com.
This can be a real moneymaker!
Bob
Thanks to all for the replies. While this is a real deal, the figures are hypothetical. I'm just trying to understand the specifics of a transaction which cashes the current owner out of this foreclosure so I can structure the actual transaction, the form of which is yet to be determined. In the particular case, the fair market value is considerably higher than the price I'm offering and I am contacting potential buyers at this writing.