I was just wondering if anyone has used properties in default as L/O? Is it worth persuing? Thanks.
If the numbers are right, it can be. The key here is you are likely going to have to come up with some money to cure the default and bring the mortgage current. Often, you can get that through the Tenant/Buyer.
If the other numbers make getting the mortgage brought current a good deal, then it is a good deal. Most of the time, it isn’t.
That combo is usually a bad mix. If you are coming out of pocket to bring the loan current, you need to get the deed for your troubles. Lease options are good for many deals, but not one that is in default.
The numbers are really going to have to be the key. You definitely need to get the deed via Sub2 then you can hold it on a L/O, L/P, or Owner Finance. If the amount to reinstate is too much consider a Private Lender. Also consider discounting the 2nd mortgage if you have access to privated funds now you have MORE ROOM $$$. I hope this helps. :bigthumbup