Hello everyone, I got a call from a lady today who says they (her and her husband) need to sell their home quickly. They are not in foreclosure or default but have an ARM that has adjusted and they can no longer afford the payment. She says that they want out and to save their credit.
They have had the home listed since July '06 and have been chasing the market downward on the price. They had a couple of offers early on but turned them down because they thought they were too low. Now they wish they had taken them. She says that it doesn’t need any repairs, but we’ll see. I am going to look at it on Wednesday. It is currently listed at 425K and was appraised in February @ 442K. They have had some interest at this price but nothing serious. Now they just need to get out from under it. Here are the numbers:
Hello there,
They don’t sound very motivated…yet. Stay in contact with them. Perhaps offer them a sub2 at mortgage value,have them pay the portion of the monthly payment they can afford. You pay the rest of the monthly. Also offer them an equity split when you sell it. Price it below all others on market and sell. Request that their realtor pass on fee’s when you buy and in exchange you will relist with their realtor, I believe that would be a win win. Your thoughts ?! Darin
the appraised value doesn’t seem to matter much because at 425k, it’s not selling. i doubt that they will accept equity split either because it will probably cost them more than 25k to give it to you (assume the agent fee right now is around 20k, 5%), they might as well price it even lower to avoid the hassle.
could be a deal, but not a hot one. what is your plan? what kind of exist strategy do you have? there isn’t enough equity to assign it to someone. if it needs a bit cheap clean up to sell at FMV, maybe then you can work something out.
Tell them to either cancel the listing to let you buy the house or you are not interested.
Looks like they dug themselves in a hole. You can’t take over the mortgage if it is listed.
Your plan of action is to get this thing subject2 the existing loan, and work something out for their equity.
Make it clear to them they won’t be able to save their credit if they keep dragging out the process even longer. Equity is something they have already lost due to their situation of needing a really quick sale. And drop in market prices dictate that they either need to take the loss now, or lose their credit and take the loss later.
I think this is an awesome sitiuation that you can make money off.
Maybe talk to the realtor as well as the seller to get the listing removed. This is difficult but that’s what you will need to do.
They have the house listed with a friend who is a reator. He is willing to drop the listing for them. My exit strategy is to spruce up the property and resale. I don’t think that, as you said, there is enough room to whoelsale this deal.
I was thinking of offering in the neighborhood of 335K - 340K and see what they say. If they take it great, if not I’ll move on. Thanks for the input.
I agree the appraisel is useless. They generally are. They are typically inflated to let people borrow more money. It’s not selling at $425k. It’s been on the market for almost 10 months. The magic question is where would you have to price it to sell it quickly?
I’d also go see it. I’d be skeptical of the whole “no repairs are needed” statement. It’s obviously not selling for a reason. It’s either price, condition, or both.