Say a person bought a house for 650k in 2005 and now in 2007 the house is empty, boarded up and really trashed, would the owner be willing to accept say 450k? and what will happen to the balance owed?
A lot depends on how much is owned. If there is equity it sounds ideal for a “subject to” purchase. If more is owed than it is worth it sounds like a great “short sale” (go see the foreclosure forum).
What you really need to access is what the house is currently worth and what you would be willing to pay for it.
It sounds to me like this is a deal waiting to happen unless you are the person that owns the property. If you are you need to find a savvy investor and see if he will buy it from you which case you are going to take a substantial hit. :flush
In any case good luck with this one.
would the owner be willing to accept say 450k? and what will happen to the balance owed?
You’re asking the wrong people. If you want to know if the owner will accept $450K, call him and ask. What will happen to the balance depends on the owner’s situation. Again, ask him.
A bigger question is SHOULD you buy the property for $450K? What is the CURRENT market value. How much is needed in repairs? What will the holding costs be? How will you make a profit from this property?
Good Luck,
Mike
Would the owner? Maybe. The questions that Property manager asked are very important, though.
One important question is how much does the owner owe. Maybe they owe $650k, in which case you may have a great candidate for a short sale. Has it been foreclosed on, and the bank owns it now? Then very possibly, depending on other circumstances, the bank may be willing to get rid of the property for a deep discount.
Of course, if the owner only owes $200k (it happens) then maybe you can get it for even less.