OfflineOK so i received a call from a bandit sign. the homeowners fiance tried committing suicide in the house and police shot tear gas through every window to stop her. kind of weird but either way they are not living in this house and are 4 payments behind. they also owe 90k on the house roughly what its worth and it needs windows and some light work but is said to be a very nice house. but say they would be up for any strategy that relieves them of the house like take over the payments. is there any potential here ??????????
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How much is the house worth???
Where is the house located???
Can the loan be transferred and if not, who do you know that can do a short sale to complete the transaction???
Read your post and ask yourself "How would anyone know if this is a deal or not??
Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
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http://www.mdlodeals.com Tenant/Buyer site
You have to answer questions from Elix and read Michael's response. Can't help you if we don't know the numbers,location,comps, strategy on and on. do some homework and then come back and ask...Jan
If they owe roughly what the house is worth, and they just want out, it could be a candidate for a subject to or a lease option. What are the rents in the area? You could use the option money from the tenant buyer to make up the back payments or the down payment from a buyer if you want to flip it subject to. Since you are going to be losing profit making up the back payments initially, try to create a reasonable monthly spread if you sell it subject to on a wrap around. If you can swing covering the back payments, if it will cash flow for a rental, you could consider buying and holding. Or you can negotiate a subject to deal or a lease option deal and just assign it to a retail buyer. A lot of strategies available, you just have to plug in the numbers and do some research to see what will work for you. A lot depends on what element of risk you want to take on. Do you want to be making payments or doing maintenance when it's vacant or do you want to take a quick chunk of cash and move on to the next deal. The important thing is you have to be careful about covering your bases buying a property in foreclosure. Recent laws have been enacted to protect people in foreclosure and you have to make sure you don't violate any of those laws.
Determine the fmv first, get an actual est. of repairs, and determine ur offer from there. The numbers are what is going to make or break ur deal. U could sandwhich l/o but that is very risky if u dont know how to protect urself. Seek legal counsel if pursuing that route. Always have to have an exit strategy in this business.
sorry for not providing more details. I will provide what i can. Ok so the caller was the husband he said he just wants to walk away free and clear. they owe 90k on the house and they just bought it around 2 years ago for 95k so its resell value is near that repaired. it needs 12 windows =2500$ and he said it is a nice house other that the windows. its a big house with a double garage. they are behind 4 payments and have not heard anything about a sheriff sale or foreclosure yet. this house is a little out of my area but rent on that big of a house with the garage's would be around 800$-1000$ a month comparables for the area are from the 60's to the 90's. im not sure how a short sale is structured? any info would help thanks.