Hoping for some input,
Owner, does not want the home. He lives in another home, this one is vacant and he is not wanting to be a landlord. He is behind in pmts. (10 mo) Was originally with WAMU now with B of A. Place needs work but is livable with some elbow grease. He owe’s $158,000 Comps are $ 160 to $ 170k. He is willing to give me the key’s and not have it be his problem anymore with no money down. He will keep loan in his name. I talked with the lender about a modification and it has been approved. New mod pmts $375.00 market rents $900.00. Home is in good neighborhood with nice homes on the street. I believe it has potential. What forms do i need to be signed to get control of the property?
This is an investment property for me. Has anyone done a deal with modifying the loan, to close on a deal and make the numbers work?
Does this deal have any life to it from an outside eye?
Exit plan is to buy and hold.
After taxes, insurance, maintenance, vacancy, and the $375 mortgage are subtracted from the $900 rent, exactly how much do you think will be left? If the number is negative, I suspect you too will choose to sell.
Assuming prices are not dropping in your area (probably wrong) and you get $160k market price, how much do you think will be left after you repay the bank their $158k, the realtor commissions, and associated closing costs?
Sorry for the sarcasm, but how deep are your pockets?
There must be something I haven’t heard about the loan mod programs. How long do the payments stay at this reduced amount? You can’t stretch out 158k long enough at 5% interest to get the payments below 650/mo so how are the payments down at $375/mo?
I’m with everyone else on this one. You gotta walk away. You’re admitting you’re buying a house that needs work in this market with no equity. You are going to inherit a problem. Don’t be so desperate to get something that you jump at something like this because you don’t have to put money down.
Well again the one’s actually working this business seem to know best. Im contemplating all the input and of course it doesnt look so promising. But to nswer some of the q’s, I would make this subject to owner getting modification done and it would be for one year then go up one percent then another percent in two years then stay that way for another three. So a five year modification. Also the pmt does include T&I. As for the condition of the home it is livable but does need cleaning, nothing major that would keep it from being rentable.
Im wondering how it can be 10 months behind and not in foreclosure? I talked to the bank today and they said they were giving the owner time to start making pmts. Has anyone of you heard of this before???