Help Please.
I had a lady call me off of one of my ad's and told me she just lost her job and wants out of the house she is in. She just bought it in May of 03 for 157K. She would sell it to me for just that.
Comps are close to that, this price really is retail. My question is can and would a short sale work here?
They are not behind in any payments.
Thank you.
Could you do a Sub-To deal in this case? And have a rental? Would there be cash-flow? What are the rents in that area?
I don't see any deal in a short sale...
Lance
There must be some equity (downpayment...). I wouldn't pay retail.
You can do a short sale on this property but it will be a challenge. The first thing you are working against is that the homeowner is not behind on their payments. The second is that you do not seem to have an exit strategy once you decide that a short sale is a good option. The fact that the property does not not have any equity is a good thing but there is more to it than that.
More info....
Her and her husband are divorcing and going their seperate ways. He is still living there until the house sells.
With no equity in it, how is that a good thing?
Thanks for all the replies.
I have to meet her today at 3:30 so I am on my way in 15 min.
Well I met with her today. House needs some cleaning and the pool needs drained and cleaned (it's green now).
Huge house single story 2300 sf, but my appraiser said value is about 157K she owes 152K. Mtg is 1100 mth. Rents would only be at tops 900 mth.
I don't have an exit strategy but I know the property will sky rocket in a year or two.
Any suggestions. I don't have the funds to tie up for that long.
1st concern, I have has to do with the spouse. Has he agreed to what the wife is telling you.
2nd concern is NOD has not been recorded.
3rd concern not being able to complete the deal.
4th concern (Most important) what is your expectation of the house value sky roceting in the next 2 years. What is that based on on or is it a wish? Your profits are normally guaranteed when you close the deal Not when you sell it.
Quote:
On 2004-03-25 18:42, Chockg wrote:
1st concern, I have has to do with the spouse. Has he agreed to what the wife is telling you.
He will Quit Claim to her his part for $200.00
2nd concern is NOD has not been recorded.
Correct, They are not behind in payments yet. She will do anything to not have a foreclosure.
3rd concern not being able to complete the deal.
What do you mean?
4th concern (Most important) what is your expectation of the house value sky roceting in the next 2 years. What is that based on on or is it a wish? Your profits are normally guaranteed when you close the deal Not when you sell it.
Based on appraiser, RE agent's I deal with say the property should be at around 175 - 185K in a year or so.
Since you will not have to wait for 5 day cancellation for Short Sale:
You need to resolve the 3rd concern which is - how do you plan to complete this deal (assign it, close it or better yet flip it).
Since you don't have the funds to close and carry a negative, I would probably try to assign it to someone else who can, with the expectations of the house value increasing in the future. I don't think there is enough dollars to accomplish a flip.
Another Option would be find a Partner who would be willing to come in with funds for a % of profits (have a written partnership agreement).
I would present her with a Offer to Purchase with the contingency that her husband sign the Quit Claim within ? (your comfort level, mine would be three days) days of acceptance. Make sure you have weasel clauses in the Offer to Purchase.
I would walk away from this. No deal here.
I agrre, there are more profitable deals to get involved with. Just takes a little work. But this was a good exercise.
I agree as well. I have told her to call if she gets 2 payments behind then I will TRY to do a short sale with her lender.
I know she would be willing to do that.
Thanks for all your replies.