A lady called me yesterday and wants to basically give me her home. She went through a divorce and needs to get rid of it. It’s a 4bd/2full bath home with an inlaw. The home does not need any repairs and she is asking $273k because that is what she owes on the mortgage. She told me she pays $2200 a month (piti), interest is 5%, 30 year fixed. She doesn’t want any money, just for me to take over payments. The problem is that the property is only worth about $260k, and i feel that prices are still dropping. My question, is there any stratagey I can use to get this property and still make a profit. I was thinking about a lease option, but I am not to familiar with how it works. Or is there anyway to get the property at a lower price then what she owes (all payments are current). Any and all help is greatly appreciated. Thanks
There are TON’S of people in her situation now. I must get 10 calls a week from people who are “upside down” in their homes. My advice is forget it. If the house is worth $260K now wait till 2008, that sucker is only going down from here.
Lot’s of deals out there from people who actually have equity in their homes, just be patient, do some marketing and find those people.
Doing this deal is just going to tie you up, and my guess is it will be right at the exact time a real deal comes along.
I agree, unless it’s a house you could live in, it doesn’t seem like a good investment. It would probably be hard to find a tenant that would pay more than 2200/month in rent.
It is possible to try and approach the lender for a short sale if you can build a case that the owner will have trouble making payments in the future. It would have to be a unique situation where she had lost her job or had large medical expenses, etc.
Thanks. I am very vague about short sales. Could anyone put me in the right direction to learn more about short sales? I have a good marketing campain, but where I live (boston), alot of sellers owe more then what their house is worth. I started this marketing to try and find properties to wholesale, but have yet to find properties at steep discount. I am thinking learning short sales would be good. I just got another call about anhour ago from another gentleman who is in the pre-foreclosure. he also owes more then what his home is worth. his is a 2 family. thanks for the replies.
Your Strategy? RUN!
Mike
do a search of this site & reiplace.com for short sales . also check for books on ebay. :smile happy hunting .
harriet(fl)
There is an entire forum at this site devoted to Foreclosures and Short Sales.
Thanks everyone for the help.