Foreclosure on condo lead

Fellow called with a condominimum. Here are the over the phone facts:

  • 1st Mortgage $497,000 at 8% with $3,700 PITI
  • 2nd mort- $30,000 with $290 payments
  • Six payments behind on first ($22,200)
  • Behind on 2nd- though not sure how many (say 6)
  • Has not paid 2004 taxes ($6,700)
  • ARV = $625,000
  • $310 per month condo fees (probably 6 behind)
    Let’s say he has total of $559,500 in debt.

Our plan- GET THE DEED! #1- going today to see property
#2 - short sale package for 1st mortgage
#3 - negotiate the 2nd down to $3000 or less.

Ok, how does this look so far? Anything we have missed?

Our exit if the short sale does not happens seems solid with a straight sale- even if we caught up all the arrears- we are still looking at a potential $50,000+ profit.

What does everyone think? As always thank you so much for any feedback. These forums are great!

I’m pretty conservative, but if the short sale doesn’t go through, I’d be hesitant.

Holding cost on a property like thi$ can eat you up. Plus, if you pay a listing agent, you’re looking at $30k+ there. It really depends on the local market. In my area, I always figure on using an agent to move high dollar properties. Must be a hell of a condo…

Good Luck