I have a property that i own and I owe 531,000 + 6300 legal fees, I wanted to tear it down and rebuild to save the home and sell it but being in pre-forclosure hard money is hard to find, I am working with a realtor( nothing in writting) who says he can find an investor to buy it short and give me cash back but he won’t answer the phone
the property appaised at 633,000.00 in 2005 and from my other posts at the construction forum you can see comps on the property
one on a corner in my neighborhood sold for 1,367,000.00 after a rebuild, the bank is open to a short sale, and I wanted to know how I can get some of my cash out if somebody does a short sale deal, there is plenty of potential in this property it is in the ocean city nj sea shore area
I thought you could make money at 540,000.00
1,367,000.00 at 65% would be 885,000.00 thats 345,000.00 to build and should be lots of upside but on a short sale there would almost a 50% cltv
is anybody interested or have some knowledge to share so I can at least get some cash out
Posted by: JDS
You can’t get cash out of a short sale.
JDS is correct… to a degree. A LOT of the ‘investors’ in S. Cali offer cash outside of escrow. There is nothing whatsoever in the law to keep someone from paying too much for, oh, say, a end table or bedroom set. Strickly speaking this may constitue an unethical practice and a zealous prosecutor might be able to prove fraud, but I know the practice goes on day in and day out.
if somebody makes a deal with the bank to buy the home and then lets me stay in the home while I make repairs for them then there is no fraud in that, its their property then and they can handle the rehab anyway they want, I am an electrical and general contractor and work is work and how I get paid is none of the banks business after the sale
Hey OCN,
Send me some additional information, this may be something I am interested in buying. Let’s be careful, I’m not sure how much REI wants us to discuss this on open forum.