How would you get a bank to accept a SS on pretty hosues with no repairs, with no equity? How would you help the HO out. A HO called me with this
FMV 165k
Owe 159k
Arrears 6k
Repairs 0
I went buy to look at the house. I didnt see one thing wrong with the house. So what next. They cant afford to make the payments anymore.
I’m going through the same thing right now. I’m trying to pitch to the lender that the cost of carrying is property to sale will be X dollars. If your state has a long foreclosure period, point out they will continue to lose the use of that money for all of that time. Point out the legal fees that will be paid. Realtor costs, etc. Get some favorable comps from the area to show the place is not worth what is owed. Put it all together with the rest of the info required in the SS package and send it in.
How about getting the place sub-2? You maybe able me able to convince the owners, if motivated enough, to let you take over the payments. Check to see if rents could support the mortgage. You would have to make up the arrears but when you lease option the place you can get that back and a little more from the nonrefundable deposit. Have not done this yet but I’ve read that’s how its done.
If there are no repairs, you need to push the Hardship and make the highest offer possible to still make a profit.
The easiest thing that comes to mind is to influence the BPO with low comps that you can provide the realtor with.
First ask the Lender to schedule a BPO.
Find out when the BPO is scheduled and meet the realtor at the property and provide them with low comps, and try to get a repair estimate (unless it’s brand new, you can find 5-10k in repairs). If you do this for them and state that you need the BPO to come in at a certain value that is justified by the low comps and repairs, they will usually comply.
Now you have created equity out of thin air!
How many times do you think the Lender has heard the usual pitch from investors…"you’ll be stuck with the monthly costs, leagal fees, realtor fees, etc if it goes to auction.
TELL THEM SOMETHING THAT THEY DON’T KNOW!