NEED ADVISE ON BANK REO

Foreclosures, Short Sales, Tax Foreclosures
1

I have a contract in place through a broker to purchase a bank owned condo. We signed the deal on March 18th to close on April 20th. The bank and the local sherrifs office screwed up the title by mispelling the prior owners last name. (this is what I believe). The title company won’t guarantee the title so that’s the hold up. I have signed 2 30 day extentions thru June 20. I’m getting impatient. The broker says they may have to re foreclose.

Now here’s the deal: There are 16 like units in the complex. Mine is 2bdrm condo. Only needs paint and carpet. HO fees $150/mo. Taxes $1100/yr. No new comps, but average appraised value is $42,000. I’m under contract to purchase for $14K cash. I plan on renting it for $550/mo.

My first thought is to walk away, but after thinking about it before I sign off, is to continue to tie it up with extentions as this may be a great deal. Also there is no guarantee I will get it when they get the title right. Please share thoughts. Is this a good deal or how long would it take to “reforeclose”

Thanks

2

You are walking away , it seems, simply due to impatience. A 30 year mortgage on $14K is about $80/month + $150 HO + $100 tax. This leaves around $220 for other expenses plus profit. Seems like it could be a good deal. I’d keep it tied up and simply wait it out. What do you care how long it takes? Keep looking for other properties while you’re working this one.

jmd_forest

3

Thanks for the advise. I thought about what you said it all weekend and suddenly it hit me like a brick. It isn’t costing me a dime as long as I keep it tied up. So I called my broker and I got a 90 day extention. Of course I can close whenever the bank is ready. So I’m off to look for another rental. So instead of buying one at a time as a novice, I’m filling the bucket a little more.

Thanks