Need help structuring deal

Foreclosures, Short Sales, Tax Foreclosures
1

I don’t want to put any money down, but I’m not sure how to structure it. Here are the underlying facts:

  1. It is a blanket loan, which means that all three properties have one single closing cost.
  2. They owe 110,000 and their asking price is 117,000. However, they are in the final stages of foreclosure, are divorcing, and need a quick sale.
  3. Their current payments are 1,223.77 PITI.
  4. One is rented for $575. The tenant has been there for years. The other two have market rents of $525 and $550.
  5. The comp value (based on nearby sales) is $160-$170 for all three.
  6. No major repairs are needed.

My goal is to assume their loan, or offer them seller financing, and then re-fi immediately after closing. Because it is november, it would be hard to sell so I plan on holding them as rentals/lease option. They have found a tenant for 1 property at $525 and I plan to lease option the second.

Can someone help me structure this deal? It will be my first. I’m a newbie.

2

I seriously doubt you can assume a loan that is already in foreclosure. If by some miracle they let you assume it, you would have to bring it current by paying all the back payments.

You need a new loan.

dave

3

umm why assume loans, bring it current and make payments. Otherwise you now have it on your credit report.

4

Don’t assume it get a new loan for the 117k and let the seller pay your closing
costs and you may get some cash back (llegally on Hud-1) up to 6% the seller
can contribute in most cases. Then refinance using the 165k value to make your
profit. An assumtion would most likely require you to bring the payments current
or at least restructure the loan with a down payment. If you don’t want to come
up with cash the new loan is your best option.

Sounds like a decent deal. Good luck.