I ran across a women that, on a scale from 1-10, is at an 8.5 as far being motivated to sell. Here’s the situation. She owes more on her house than what its worth (I explained to her that I would be willing to take the house off her hands, but it would be at a significant discount) she applied for a modification, but has been turned down, she is CURRENT on her mortgage for now. My questions because I am new to this are:
Is there a deal to be structured from this, and if so how?
Is this when she should be looking into a short sale, if so does she do it or is this my position to try and assist to make sure I get the deal?
Should she stop trying to keep up with the mortgage and let it go into pre-foreclosure and then I go after the deal?
Is there a way to do a subject to/lease option?
Like I said need some help in determining if this is worth pursuing…Thanks
Hello opmcapinvest ,
You need to remember that real estate is easy, people are hard. You have done the hard part already. You found the lady, you got her to admit and understand that she wants to deal with a discount and deal with you. The easy part is what you are missing and you don’t mention anywhere I our post. How much will the house sell for it you priced it so that it would sell in a month. How much can you get her to sell the house for?
Hi Bluemoon,
Sorry for leaving that part out. In her neighborhood the property should sell for around $100k FMV. To get it sold within a months time, I would think that $80-$85K should do it, and as far as what I would be able to get in the deal for I’m somewhere in the neighborhood of about $35k-$40k; I was able to see the property its a 2/2 with a 1 car garage on the lake. Minor rehab needed I’d say less than $7k (and that’s estimating high)
You could all the necessary ppwk needed from this fsbo seller to submit a short sale package with your offer to the lender. If it is listed, you would need to work it out with the agent as to handling the ss with the lender.
If it is upside-down, subject2 or l/o won’t work.
FYI, the lender would need to see comps in the range of 35-40k(with repairs) to sell for that low if all similar comps are around 100k. Getting a SPO for around 40% of value just doesn’t happen on short sales unles the lender has a really low bpo. It just needs to be justified with comps/repairs.