Possible Subject To Deal

Hi to anybody who reads this, hope your week is going good. What I have here is a nice home, was built by owners with in a way to accommodate elderly parents. The home has an elevator that goes downstairs and everything downstairs is built with no steps or accessible. Built 99, 5 bed, 4 bath, 3 car, full kitchen downstairs.

Owners are moving (getting transferred for work) to Pennsylvania on the 15th of August. They have had the house on the market for 90 days (FSBO). Plan A is to work with me, Plan B is if we can’t work out a deal that works for both of us then they will list with a realtor, Plan C is unknown.

The owners are behind on payments since 1 Apr 2003. They did call the bank in May after the husband got another job and tried to work out a deal with the bank. The bank at first worked out a way to roll all the missed payments into 6 months and append it to the original payments. A day later the bank called and said it was against their policy. The bank then told them stop paying unless they make up all the payments in one lump sum payment, so the sellers stopped paying.

1st is 340K with a payment of 3000 PITI @ 6.75% and roughly 12K of back payments due, will be roughly 15K by August 8th which is a date the bank has given for some reason.

2nd is 38,500 with a payment of 750 and is current. This is a line of credit on the home.

I walked them through a subject to at a price of 413,500, most comps in the neighborhood are around 430-450, although with the extra elevator and kitchen downstairs it’s hard to say, I do think this is the main reason why the home has not sold is the elevator. They have had roughly 2-3 showings a week and the elevator is more of a nuisance to most people. You could cover up the elevator upstairs and downstairs and I think this house would sell no problem.

I feel that there is plenty of room for me to renegotiate and I did get a authorization for release of information for the loans, I did not lock it up because I felt there might be a few what ifs I couldn’t answer.

Thank you to anybody who has read this far.

Questions:
When contacting the bank how do I broker a deal that works and protects me as well? ****Must Reach Senior Investor status before posting URL's***. little or no money into the deal. I would find a tenant-buyer who would come in with an option payment of 1-3%.

I think the total of 3750 is high for rent on this home, I did a simple calculation and even the full amount financed of 413,500 at 6.75 is around 3,100 PITI. I feel I could get someone in there, at that price but 3750 is pushing it. I don’t know if they would carry back payments of 750 a month, think they might entertain some of it though.

I told them Friday night I will sit down with them or call and give them an idea if I think we have a fit or not. I said I had to speak to my partner and talk to their bank first to see if this would work for me as an investor. They were planning on meeting a realtor on Saturday and will most likely list with them if we don’t work out a deal.

Any ideas advice from anybody would be beyond appreciated.