My name is Michael and I am an agent in the Memphis TN area. I realize the money is in RE investing, so I’m headin’ that way. I have a 760 FICO, a partner with $250k line of credit and a 740 FICO, I have $15,000 free on a credit line and a clear $5,000 VISA at 9.99%.
My question is this: I currently have a listing that has been on the market for a yr @ $164,900. Comps show value as $184, but I know that ain’t happenin’. It is in the Cordova area of Memphis, nice area but a glut of homes this price range. Used to be in the county (better schools, no Memphis taxes) but is now in Memphis city limits. Folks are walking away from 20,30 and 40k equity just to get out of Memphis limits.
Anyway, the home is 2,000 sq ft, good condition, one of the larger homes in this subdivision. Probably needs less than $5000 repairs, if that. The seller would not return call during the last month (teenager problem, etc…) I finally got a hold of her and here’s the story.
She is one month behind. She desperately wants out! I mentioned a possible short sale and she said she would listen. When she bought the house several years ago she was making $40k a yr. The company “reorganized” and she lost her job. She is working at a daycare for alot less, a single mom w/ 2 kids, etc…
I have never done a short sale but kinda know the general idea. I was wondering if this may be an opportunity for my partner and I to 1) help her out and 2)make some money with a short sale? Any ideas?