I have a motivated seller who goes to auction 14 days from now. First phone call this evening, she just wants help. House is listed, she can’t sell, it needs a lot of work and has maybe $5000 to $10000 equity based on what she told me
If I meet w/ her tomorrow and get her to sign:
Authorization to Release
Purchase and Sale
Deed (yes or no)
What and how likely is it the bank will delay the foreclosure?
If so, how much time do I ask for or do they usually dictate that and would that be the LM Dept.?
I have the attorney’s name and # handling the case, can they get me payoff/final judgement info. I would need to start working my numbers?
Go for it. Have you looked at the value subject to repairs? Does the seller have any other liens on property? Attorneys usually want to settle 3 days prior to sale around here (GA). Do your purchase and sale agreement, get written authorization from seller allowing you to discuss transaction with attorney, get abstract of title (attorney should have and may even close the transaction for you…) That’s how I’d handle it…
Do not get your hopes up to high. 5k-10k equity is not very much and 14 days is next to no time. Factor in all of your costs associated with obtaining and holding this property per your goals. If this is your first deal, just from reading the equity numbers I would say pass. I live in a judicial state so it takes about 7 months to foreclose. At 14 days before sale they have already tried 2-3 other investors and they are grasping at straws. 5k-10k is not enough to work with
That said I am soon about to close on a home with a small equity position. I decided to go for it since all it needed was a good cleanng, in a stable neighborhood and I could rent it out for a good deal more than my payments.
Have her sign the 1. Authorization to Release 2. Purchase and Sale… Not to sure about the deed, does’nt a notary have to be present for the deed signing? The bank might delay the foreclosure if the offer is in the ballpark. In my neck of the woods the sellers lawyer can go to court and request extentions for the case. I once had a lady who had been in foreclosure for 3+ years. She bought a property and never made a single payment on it. The home just sold last Friday after being delinquent for the past 39 months. This lady KNEW how to work the system.
What I meant by equity is the low price end for sales of that neighborhood is around $220K and her final judgement is $213k. so about $5K to $10K equity in the property now. I want to make a lot more than that if I rehab it.
I was thinking b/c of the repairs needed, surplus of inventory, and home pricing declining in the area to make my offer to the bank @50% off so about $110K.
That sounds super low, but from the course i just read it said you should be embarrassed about your 1st offer and start at 50% off. what do you think?
Depending on what offer I am able to negotiate w/ the bank will determine whether I wholesale the deal or rehab.