So here I am In Nor Cal a new investor in a motivated sellers house ) sitting in a nice families front room and the wife is really wanting me to take over the payments of her 2098 sq foot house. The total payment is $2300.00 a month on two seperate(adjustable rate) loans one at $240,000, and second at $63,000. Taxes are not impounded and they are going to be about $3000.00 to bring current. Oh by the way it will take $14,000 to bring the loan current. The total owed is $303,000 (seller apraises the house at $343,000) but local sales would probably warrant $285,000 retail.
Okay, Okay, I know but I would love to here from all of my wise and experienced peers. on what you would think.
The motivation is there, but it seems that a short sale on the second may be the only way to make this even pencil… but there is that adjustable on the first. Any way I thank you in advance for opinions
never go by what the seller says it’s worth. If the comps say 285k, its 285k. So lets see you could get a 285k home for just 303k… When your done with that one, I’ve got a few I’d like to sell ya.
what are you motives for purchasing this?
i just don’t get it?
The motivation is to leverage myself into a property because that is what I do to make a profit. And thank you very much jpopkin for that informative message. You see I am lowering the on paper value of the house from $343,000 to what I believe i could sell it for $285,000 on the retail market based on recent comps and based on sales in this nieghborhood. I was hoping to get some real advice but you have demonstrated that the newbie forum may not be the place to get it. Gotta go… My time is money.
so you’re hoping to convince the lender to sell it now for a loss, in order to avoid foreclosure and further losses?
there’s two mortgages.
so 1st position gets paid in full and second makes whatever…45k, while taking a 20k loss - rather than the alternative - risking losing it all in foreclosure.
now. the sellers obviously get no money out of this deal (and they’re okay with this?)
so, my question is, you “leverage” yourself into this property - fine.
what do you do with it? what are your intentions? also, who are the lenders, and why do you think they’ll agree to this? do you have any advantages in dealing with anyone specific at the banks? i’m just trying to get information so that i can understand better.
thanks.
…I’ve read this one over a couple of times to see if I have missed something. I really just don’t get what the strategy is here.
Mark
- i believe he’s going for a short sale - thinking the lenders will agree to take 285 because the current owners are behind 14k in payments.
so he gets it for 285…
but what’s confusing me as well is - he said comps are more like 285…not 343k (what the seller said it was appraised at).
this is confusing. i mean, if it’s valued at over 340, then picking it up in a short sale for 285k is pretty darn good, right?
the thing with convincing a bank to agree to a short sale is not the easiest task in the world - even though, it makes sense when people are behind in their mortgage and ESPECIALLY when there’s a second mortgage - you’d think they’d jump at instead of risking a foreclosure and getting nothing.
Thanks…that does help clear it up somewhat…I suppose what was keeping me from understanding was the same thing that bothers you. I homed in on the comps at 285 and was thinking…ok, so maybe he can buy at 100 percent of value…hmmmmm…this is where I was at a loss…
Mark