Need A Little Help On This Deal!
I have a friend of the family who is about to go into foreclosure on his home. he is about to walk away from the whole thing and take a loss, but he is willing to let me purchase the property from him. it has a remaining mortgage of $112,000. He just wants to break even, so he is asking $112,000 for it. what would be a good way to purchase this property for a little money(or no money at all) down as possible?
If anybody at there as any suggustion , I am open to them
What is the property worth?
How much to bring the loan current?
Does the $112K include all late payments, missed payments and bank fees?
What are you planning to do with the property once you own it?
the property is worth $135K.
the seller is going to bring all the payments current as we speak.
there are also no liens or back taxes.
I plan on turning it for a quick profit. will only rent if i can't find a seller fast.
Gesh, if the seller can afford to bring all the payments current, why is he selling?
Anyway, it sound like you may want to do a Sub2 deal if he is looking to get just what he has in it.
You will buy the property subject 2 him bringing the loan current and leaving the loan in place. You will give him no money, but will releive him of his home loans. You may want to offer $500 bucks or something to help with the move or as a deposit at his new place he is renting.
You then sell the place OWC for the full price, with a call in a few years to force them to refinance and cash out.
You could also Lease/option if you wanted.
the seller has a couple more pieces of property that he owns and is payin on, so he would rather part w/ the home. what is "OWC" ?
And after I sell the property, would i then ask the buyers to refinance?
owner will carry (OWC)
You could sell the home outright, but there may be some seasoning issues with some lenders, but if you have a good mortgage broker they should be able to get around that.
If you carry the loan, you can get a good down payment in your pocket and then have a 3 or 5 year call in the mortgage to force them to refinance so you can get cashed out.
Ohhhhhhhhh!!!! that helps out alot!!!
I can see it clearer now! I do a sub2 making sure that he has everything current upon the sell. after cleaning the home up a bit, I resell it. I don't believe that i will have a seasoning issue w/ my lender, neting the expenses that it toke to get the home.
Dj:
Why don't you try to do a short sale first... Get the deed, contact the bank, talk to the loss mitigation department, do a hard-ship letter, etc.... If you can get a low BPO to come in you might even get a better deal and your buddy can keep his money....
Best Riches,
Jeff Adam
[addsig]
Even if not a true SS, just try to get them to forgive the accured late payments if you pay it off so your buddy won't have to pay anything to bring it current.
Quote:
On 2004-12-10 01:29, JeffreyAdam wrote:
Dj:
Why don't you try to do a short sale first... Get the deed, contact the bank, talk to the loss mitigation department, do a hard-ship letter, etc.... If you can get a low BPO to come in you might even get a better deal and your buddy can keep his money....
Best Riches,
Jeff Adam