I don’t know if there is anything I can do with this so I’m opening it up for some ideas and discussion to see if I’m missing anything.
A couple bought the home in Dec. of 05’. They are divorcing and just want out. They are willing to deed me the property but with the numbers below that would be a risk.
Wells Fargo jammed them into an 80/20. Appraised at 79K. First mort. is at $56,309@ 9.5% int. Second mort is at 14,firstname.lastname@example.org% and a 3% prepay. Total mortgages is about 70.3K. Since they just bought it I don’t see how there is any equity in the home plus appraisals are really hit and miss nowadays. She is moving to TN and he is going back into the military. Got any thoughts on this one? Can’t do a short sale cause they are current. Can’t really wholesale it cause of little equity. Can’t do a sub-2 cause of the obvious. Am I missing something. Your thoughts are welcomed.
Yes, this is a tough call. Do you have anyone on your buyer’s list that likes to buy and hold? I don’t know what the rental rates are in that area, but could it be possible to own as a rental without negative cash flow?
If that doesn’t work, then their only option seems to be to list it. Do you have any realtors that you have a relationship with who would be willing to reduce their commission to help this couple out?
I had a similar situation where there was a sliver of equity and I advised my customer that their best option was for me NOT to buy their house. I advised them to sell using either my realtor or try FSBO - that was the best solution for them, and they are cleaning up the house to get ready to list it. I gave them some tips on curb appeal and landscaping and wished them well.
I wish all our opportunities could generate a good profit, but it seems that these “middle-of-the-road” scenarios are tough to figure out.