Hi, I am dealing with a owner who is in financial difficulties.
He agreed to deed the house to me.
The house’s market value is 800K.
1st loan balance is 500K.
2nd loan balance is 350K.
I would like to buy the house with the amount of 1st loan balance and just a few thousands for 2nd lien holder.
Is it possible?
If so, please tell me how to do and how to negotiate with 2nd lien holder?
Well, you definitely need to get the contact info of the lenders and get his authorization in writing so you can negotiate on his behalf. Call them and find out what they would need to accept a SS. Usually it’s going to be a package of the following:
1: Cover letter
2. Purchase Agreement
3.HUD-1
4.Market Analysis Letter
5.Proof of Funds Letter
6.Hardship Letter
7.Seller Financials
8.Repair Estimate
I’m in this business to make money and this how i make my living. Just like you clock in at work (unless you’re doing this full-time, i’m assuming you have a regular job if you’re asking how to do one…) I’m a licensed Agent, a licensed mortgage broker and intermediate investor. If you’re interested in working out something together on this deal i’d be happy to work with you…
I shoot for .40-.55 cents on the dollar. I’d offer around 225K on the 1st and around 160K on the second. Sell the home for 640K (80% of value so it sells fast and because it’s an upper-end home) Pay the homeowner 5% and keep the rest! That’s $12,750 for the homeowner and arond 230K (assuming i get involved and we would need to pay 10% for investor money which is around 30K or so…) for you my friend! If you’d like to get this one done lemme know and see if i can’t help out. I pay my investors 10% on their money. I have access to plenty of cash!!! We can go 50/50 i thinks that’s fair. Let me know your thoughts… Good luck!
Is the first and the second with the same lender? If so, I would offer 55% of the value - if not, offer the second 3k and 440k - what is the condition of the home? Take this into consideration. Depending on your market - it is possible to get a deal this good. I’m getting some accepted at 50% - it is easier however when the first and the second are with the same lender.