My elderly next door neighbors are moving out of their home that they’ve lived in for 21 years. He told me today that they just can’t afford it on their income. He said that if I was interested, I could probably get a really good deal when it goes into foreclosure.
My ears perk up because I’m really into REI, and wanted to buy a house with the fiance later this year. So naturally, I want in. But I have no idea where to start. I tried searching the records online and couldn’t find any info on the property except for one record that said it was a substitution/reconveyance, it didn’t really have any other info except the name of the company. I couldn’t find the info on how much they owe. But they did buy it in '88 for $79K. Zillow estimates the house at $250K, which in Vegas right now seems about right.
He did say to me that he’s upside down and can’t afford the $2k payments. So he obviously refinanced. I know that I need to find out how much they owe…I’m just hesitating because I feel really bad for them.
The house is in really good condition, just painted last year and landscaped a couple of years ago as well.
Once I get the info from him…what are my next steps?
Find out what he owes.
Get it under a contract.
Get him to sign an Authorization to Release information.
Get in touch with the lender, and get started on a short sale.
A short sale might not be necessary to make a profit, find out what the numbers are and see where you stand. Obviously a shortsale will create more profit for you but you still may be able to make a buck if the ss fails. Definitely find out how much he owes and get some good comps to see where you stand for real market value.
If he has $2000 payments, he probably refinanced, and the numbers are probably good for a short sale. If he’s willing to just up and move, because he can’t afford the payments, but hasn’t sold it, I’m sure there isn’t enough equity.
Would you rather, take a bath, and lose a few grand or tens of thousands, and sell fast, or would you just walk away? I’m sure most people would list it or try to sell it for their very bottom line before resorting to that.
jsut talk to him, find out the facts, and go from there. Good luck!
I just found out that they owe $300K!! 205 on a first and 95k on the second. There is no way he could sell it for 300! I wouldn’t want to pay over 200 for it. Is it possible to get it for that much less…or would it just be a waste of time?
Get the info directly from your neighbor - he has already invited you into the scenario. Go over and sit at his kitchen table and ask all the questions that come into your head and ask to see the letters, bills, et al from the lender.
There is no equity here, you’ve already stated he claims he’s upside down, payments are $2k (likely a loan in the vicinity of $300k), and market value is $250k. Short sale is probably the only option but don’t wait becuase somebody else is going to get wind and be all over this and purchasing instant equity becomes very difficult with competition.