Okay, I have a deal to run by everyone. I’m interested to see how you would approach it. I have a woman who is three months behind on her mortgage payment (not quite NOD yet) and wants to sell me her home right now. She is not expecting to make anything on it and said she will do whatever needs to be done to get out of the place and into a smaller home. Her ARM adjusted from 6.99% to currently 10.99%. Payments went from $1,500/mo to $2,100/mo and she can’t afford it any more.
Numbers:
ARV: $265k
Repairs: $20k
1st Mtg: $170k
2nd Mtg: $22k
Reinstatement amount: $13k
I was thinking of taking it sub2, reinstating the first, fixing it up and retailing it.
What would you do with this deal? I’m looking for some feedback.
Thanks.