Possible deal, need a little help

All right, after wasting a lot of my own time over the past year or two wallowing in fear, I finally decided it was time to stop talking and start doing.
So I talked with a guy in foreclosure today, he is going through a divorce and while his wife was living in the house for the past four months, she didn’t pay a single thing (her parents advised her of this, wonderful example don’t you think.) Anyway, I am going to be meeting him on Monday evening and would like some input as to what I should present to him. His current payments are a little over 800/month.
He bought the house for 125,000 in 2001 and now owes around 112,000. Like I said he is about 4 months behind on payments, so I figured about 3400 in arrears. He told me all of his resources are exhausted and he doesn’t know what to do. He doesn’t want to lose the house, but he has nowhere to turn. I am not quite sure how to approach his situation. Any input would be great.

Thanks a million…

Failure is just a fancy way to say FEAR!

Howdy Ryan:

This is not a home run deal. Is the house worth what they even owe. It may be close unless you are in a fast appreciating area. If you can get it for the loan balance plus the 3 payments it could make a good rent house or a home to lease purchase to a tenant/buyer and maybe make a few hundred each month and get your down payment back from your buyer. You may have to have it vacant for a month or longer trying to find your buyer. I would give them zero to very little for their equity and want it clean and vacant and ready to lease with zero repairs. The deal is already thin and no need to add any more costs. You have found a motivated seller but pick and chose your deals. There are better deals than this unless they have more equity than I am assuming here. Post again to let us know the retail value of the property.


In addition to Ted’s comments, make sure that all persons on title participate in the deal. If both spouses are on title, then both must accept your purchase offer. This is especially true if the property is in a community property state even though only one spouse might be on title.

Alright, I was thinking about this, would this be a possible owner financing/ sandwich deal. I know that is kind of the same situation as rent/own. I figured that maybe I could offer to make up back payments and take the loan subject to. I would then ask for the amount owed to the bank as a down payment and hope to make a little spread on the monthly payments. Of course this is dependent on no repairs, and the retail of the house being higher than the loan amount. What kind of holding time have you experienced investors seen on a house like this? What are your thoughts.


I was thinking and there really isn’t much room in this as it sits. I don’t think I could retail it and have much of a chance, if I am wrong, pleeease correct me. I was wondering if this would be a good candidate for a short sale? Let me know.