I totally agree that I should not touch this deal in the traditional way. I was just wondering if there are any creative investing techniques that can be used when you have a motivated seller with very little equity.
This could be a potential good deal if you work it correctly.First, my question to you is the $120,000 a 1st mortgage or is it combined with a 2nd or 3rd mortgage>>>>The reason why I ask is you may be able to do whats called a Short Sale>>>>If not then you want to go directly to the lender and try to negotiate purchasing the property at a discount rate somewhere around $90K would be a fair offer >>>and if they bite then that would net you around $45K>>>starting to sound like a better deal now >>>just make sure you do your Due Diligence and don’t get to attached to the outcome >>>there’s other deals out there waiting.
I think this can be an OK deal also. I don’t know the exact situation other than “nearing” foreclosure. How far behind in payments? Whats the interest on the loan thats due?, Whats the market like where you are?
If she’s 6 payments behind or so and she has a low interest loan, you can bring her current, take her deed, sell to handyman/contractor(let them make the repairs) and make some cash getting a deposit greater than your investment and some holding costs by owner financing it to them, or lease/Optioning it to them,etc.
I wouldn’t say this is a lost deal until you do the due diligence needed to find the solution. People make money on low equity/no equity deals all the time.
Get a real estate license and list and sell the property for the owner and collect your commission. ;D Or even better, reffer the person to a buddy of yours who is a realtor for a quick sale, and have him buy you a dinner, or something…
On this deal since it is in foreclosure, wouldn’t you have to go to the seller and get a purchase contract at the $90k and have them sign a release of info so the bank would be open to talking/dealing with you?