Can someone explain this ( I may be interested in buying the property):
Party A buys at $190.000
Party A invests $10,000
Party A sells to B for $245,000 (6months after original purchase)
On the same day B sells to C for $260,000
To puchase C gets a mortgage for $335,000 (approx)., as a non ocupied 2nd. home. Mortgage doc. includes mortgage insurance.
6 months later C defaults and lender takes property back in foreclosure (no bidders at auction).
How much might the lender be into this property and how do I calculate a price to offer the lender for the free and clear property.
Im not looking for a "silver bullet " answer just some guidelines.
Thanks
This sounds like a scheme that occured with condos in Dallas in the 80s…
To answer your question, you will need to look at the values of the properties in the area of the property in question. If you can get a CMA for other properties, offer about 60 to 80 percent of that figure (based on condition) and you should be ok.
:)I’m new to the game. But seems to me bid like your buying a car. start low and keep raising till bank says yes…{ with in reason of course} Seems as though you have a rough est. of what you want to pay just start off a little lower… the worst they can say is no…for what its worth…