Complicated Short Sales Question

Foreclosures, Short Sales, Tax Foreclosures
1

Hi everyone,

My partner and are still pretty new at pre-foreclosure short sales. We are in situation where the homeowner wants to keep their house and through negotiations, we have verbally agreed to buy their house through a short sale and lease option it back to the homeowner.

The homeowner owes $107k and is estimated to be worth $120k-$150k. The problem is, the house is in great condition, and most of the estimated value comes from their big acreage of land (3 acres). The house is in a small town and houses don’t sell as fast as bigger towns. The house is a modular or manufactured home as well. The lienholder is Washington Mutual.

Our goal is to get the bank to accept a 50% discount at $60k, then sell the option to buy this house for $60k to an investor for $20k and in that contract the investor is obligated to sign a lease option contract with the homeowners.

Our question is, does this seem nutty of us to think we could get a deal like this since the house is in good condition?

Has anybody ever worked a deal or transaction like this? How do we pull off the transaction between us and the investor?

I would appreciate all your feedback. Thanks.

2

Can I ask what would make you think that a bank would accept a 50% discount on something that already has equity? If you already have $13k-$43k equity, sell it for a medium profit, save the sellers credit and move on.

3

Lease option is bad way to go. You cannot promise the homeowner that you will lease option it back to them. ALl the laywers in the world will jump on you and you will lose everytime. It can be construed as a type of usury. Not being a lawyere, that is what i understand can happen to you.
steve

4

Purchase the home for what’s owed and give them some moveout money and resell or rent. But first and foremost pin down the sales price a lot closer than give or take $15k.