Need Some Advise From A Seasoned Investor
I have a buyer in distress, ready to walk , his home has very little equity.
house is worth 670,000
needs about 20,00 in rehab
1st loan 560,000
home equity loan 70,000
can't make payments needs out.
If anybody has any creative ideas let me hear them .
after the 20k what could it be worth. a deal that big should have a cushion of equity for room to hold until sold.
Thanks for your reply, I see it a little bit differently, I see him signing over the grant deed to me and maybe going after the bank who holds the equity line (70K) and tell them that their client might go into foreclosure and to discount their loan rather than loose it, that is it the first one would foreclosed, (California)
what do you think about what i just said?
Have you considered contacting the lender for a short sale?
If I were you, I would get a permission to contact lender letter from the owner and go to the lender first. If you can get them to discount, then maybe you would have something to work with. Do that after you put the property under contract with contingencies, including subject to approval of attorney, approval of business partner, etc.( that way you have a way out if you need one).