I don’t like dealing with these but it’s not going away.
Home is worth around $335k-340k
Needs nothing
Owner has 80/20 mortgage.
Behind 2 months on 1st
3 months on second
Owes about $295,000
Owes about $5100 in taxes
She wants $315,000
I’m trying to find an investor in Upstate Ny who deals with foreclosures.
But what would guys do with this?
Jim
I come across those daily now. They’re really asking for retail price less the agent commission. I just leave them to the wolves. It’s not worth the time.
Buy “The Pre-Foreclosure Property Investor’s Kit” by Thomas Lucier and/or download “Short Sales” by Peter Conti (search on the web - maybe at resultsnow.com…) to learn about short payoffs of mortgages.
Explain to homeowner as an investor, you can’t pay that much, but you can work with her lender’s to try to get them to accept less than what she owes, so she can sell quickly and get on with her life.
Get a signed Authorization to Release Mortgage Info. for both loans and fax into Loss Mitigation Dept. - wait 24-48 hours for it to show in their system.
Get a signed option to purchase agreement with homeowner giving you exclusive rights to purchase the property for the next ____ days. Explain you need this for the bank to discuss the situation with you - otherwise why would they discuss the possibility of a short sale, if the homeowner hasn’t agreed to sell to you.
Call Loss Mitigation Dept. of 2nd - explain hardship situation and that homeowner may have to file bankr. or be foreclosed on. Ask if they would consider a short payoff of the loan given the situation. Yes? Ask if they have a short sale packet - get and complete offering 10 cents on the dollar. Plan on their counter offering…
Do the same with the 1st - call and explain - get payoffs, etc. Ask if they would consider a short sale? Ask for packet - complete packet with homeowner completing their portion - Offer a short sale on the 1st at 75% or so…depending if the $s work after rehab, holding, and paying back taxes. Plan on a counter offer…
Do the $s to see if it works giving you at least 20% equity.
Hope that helps. The book, by the way is excellent and worth the meager $20 it cost vs. the $900 most gurus packages cost.
C
Yes it does help. Thanks for the advice. And I did see the book by Lucier. Now I’m going back to buy it.
Jim