Just got a call on a bandit sign and the lady owes 100 k on a home she inherited and needs help the house is in foreclosure and she says it is up for sale monday it is 5 days away she is highly motivated now however i am baffled at why she calls now that bandit sign has been in the same spot for 5 months anyway she owes 100k ARV is 152-155 not the best neighborhood but not the worst .
how would i stop the sale if i can im in california i have a feeling i may be able to flip it to some buyers in the area
Hi,
70% of $152k is $106,400! If she is in the rears by 6 mortgage payments on $100k she owes $4500 roughly to bring current, if this property is in pristine condition and updated in move in ready condition it might be ok for what's owed, however my experience with inherited properties is it's still full of junk and has at least some defered maintence!
This homes mortgage will probable still be in the original owners name so she has no risk in it and nothing to lose by it going to foreclosure! But if you can’t see, evaluate and know exactly your position I would not get involved at long distance, and I suspect you probable should be buying this for less than $100k when all is said and done, yet you would have to put up $4500 or more to stop the foreclosure and agree to pay off the underlying note which means your in it $105k or more!
I think I would pass at such short notice, in fact her right of redemption may have expired being this close to the foreclosure sale!
GR
Do you have private money? I would take the deal over subject to the existing mortgage and bring the note current. You immediately get instant equity. You can sell this deal with owner financing on the back end or lease option it since you’re in California.
if you don’t have private money, stop the foreclosure with a BK. or a TRO. I have stopped a foreclosure with the home owner filing a BK in Inglewood.
Then, take the deal over sub 2 and owner finance it. Make sure the down payment you get is enough to cover the back payments and late fees.