Still Attempting First Deal...

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Here is a recap of my first deal (in process still)

1st Mortgage (countrywide) $75,000 in 1999.

2nd Mortgage (GMAC) $40,000 in 2001.

Total $115K (not including liens/judgements/etc. havent done a title search)

$115K is obviously way too high for this prop.

The second is foreclosing. I will buy the house for about $75K depending on interior condition.

I would like to make him an offer...but don't know how to do it since his mortgages were for way more than the house is actually worth (comps in the $96K range).

How do I find out his actual payoff? Is it possible? He is also about $5K in the hole as of 1 month ago.

What is my next course of action? I thought about dropping this one, but have done some research, and would like to try to make it work if its possible.

If not, let me know why and I'll drop it.

Thanks,

Brandon

Comments(3)

  • Lufos20th September, 2003

    Dear Brandon,

    Drop it and move on.

    You want to buy it for the approx amount of the lst TD $75,000
    The Second is in forcl and at about: $40,000 and it is GMAC Yip's They probably think it is worth $125,000.

    You think GMAC would have loaned this money with no equity? and on a second?

    If you love this property wait for after the sale and hope the REO officer whatever is a slub. In the meantime, get out there beat those bushes, ask around look at all the boarded up houses get moving tempus is fugeting.

    Cheers Lucius

  • realdealinvestor20th September, 2003

    I have an opportunity to make my very first deal. I sent letters to owners of properties listed on the Sheriff Sales list on Sept. 25th. Out of 20 letters I received 2 call backs. Here's the situation. This man owes the City 4500 in back taxes, he doesn't have a mortgage on the property. He is on SSI. The property is a duplex that has one vacant apartment while he lives in the other. He doesn't want to leave and wants to work out a deal where he gets to stay. Is this a good idea. I am willing to pay the back taxes and maybe offer him to rent until the end of the year.
    [addsig]

  • hibby7620th September, 2003

    1. Get the deed to the property
    2. Do your due dilligence to find all liens and judgements
    3. Approach the lien holders with cash offers and justify your offer.
    You just might be able to get it for $45K!

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