Sent Out My First Letter!
While on my way to look at an REO, I found this little house that looked abandoned and rough. I checked into it, and the listed owner lives in an apartment uptown, is behind on his taxes @3k, and has owned this property since 1978. Initial search doesn't show any judgements, foreclosures, or liens. I sent him what I think was a warm, non-abrasive letter, encouraging him to call me to discuss his situation. If he does, I want to walk him down the road of sub2, assuming he has a mortgage of some sort. My original REI strategy was to stick to REO's untill I got my feet wet, but this could work out really well!(for us both).
So what should I do if he owns the place free and clear? Make an offer and get a mortgage for it? Or stick to sub2, pay him off and go from there? Plan is to rehab and sell retail.
Hopefully I will hear from him today and can be a bit more specific next post.
Thanks
Sickdog
If the house has been owned by the same guy since 1978, you might not want to take it Sub-2... Just assume the morgage if there still is one . Anything before 1988 is FULLY assumable, without qualifying. BUT, Your chances of him actually still owing money on this house are slim to none at best, though. If it's in rough condition, offer to give him monthly payments and rehab the thing, pay him monthly for as long a term as he will take. IF he accepts such an offer, he may want paid off in full sometime in the near future. Give him a note with balloon in 3-5 years. Rehab and sell.
Just some food for thought.
Sam