Hello Everyone,
My first possible deal. Need some advice on how-to or even if-to proceed with this deal. It’s a preforeclosure deal with a seller that owns 2-houses which are both in preforeclosure. I’m meeting with the seller to sign the contracts tomorrow and the #'s are. By the way both houses dont need any repairs.
1st House: 3-Family
Recent Appraisal - $270,000.
1st Mortgage Balance - $208,000.
2nd Mortgage Balance - $26,000.
Behind 7-Months
2nd House: 1-Family Cape
Recent Appraisal - $170,000.
1st Mortgage Balance - $118,000.
2nd Mortgage Balance - $29,600.
Behind 7-Months
My first plan was to get it under contract and try to negotiate with the 2nd mortgage companies to accept a substantial discount and start at 10% of the balance. If accepted I would then record the deed and transfer title to my name. Then I would start marketing the houses. I did my own title searches on both properties and there was only 1-water lien of $175. no biggie, everything else cleared out fine. The appreciation here in this city has been a steadily 15% for the last 5-years.
Thanks!
MEL