I need some advice…
Found a property that has been vacant for months and is in very bad shape.
The owner wants out of it so I made an offer of 50k. She accepted but she has a loan on the property of 89k with WAMU.
She is not in foreclosure and not behind on payments.
How can I make this work? The comps are at 106k and it is a very good buy for that price
You say, “The owner wants out of it so I made an offer of 50k. She accepted but…”. Do you have a written contract with her? If so, the shortfall is not your problem. When she goes to closing, she will just need to bring a check for the balance to settle…
Keith
Thanks for the reply…
The problem is she only has 17k that she can pull out of equity from her priamry home. That would leave 20k to be paid off which she doesn’t have.
Yes I do have it under contract.
It does sound like you are trying to solve someone elses problem. Does your seller understand that she has agreed to sell the property for less than the loan amount and will have to come to closing with cash to complete the transaction?
If she can’t make up the difference the lender won’t release the lien on the property. Either you or she will have to cough-up the difference to close the deal.
Does the property need any repairs, vacant, worth less that 89k as is???
It has been vacant for about 2 years and needs major repair. It will take about 20k worth of repairs and I want to add a bedroom and bathroom to make it a 3bd,2ba.
The comps are at 117low - 162high