The Hail Marry with time running out.

General Real Estate Investing
1

Due to a long term loss of income complicated by total depletion of savings I am only 4 weeks from facing forclosure of my home . My credit has also been damaged beyond repair due to charge-offs,collections and late payments. I have enough money coming from tax return to bring mortgage current and pay my property taxes and I intend to do so. I’ve just recently gained new employment but am at entry level pay scale. I am now in a negative income to debt ratio and must reduce my monthly outgoing at least 50% in order to pay min. on debts and eat. I have a small amount of equity but a loan is out of the question and only adds to the problem.

One of your club members suggestions has inspired me to think outside of the box remove myself emotionally for a minute think like an outsider might do. I soon began to realize that although my house is my biggest burden it is also my biggest asset and maybe my best opportunity to start investing in real estate, after all I already own the controlling interest in the property. One of the hardest parts of real estate investing is getting control of the property, wouldn’t you agree? Giving that up does not make good since even if I can’t affordto pay for it. No investor can afford to pay notes on his investment properties can they? They let other people pay it for you. Right? I should be taking advantage of the situation instead of walking away from it.

I have decided to offer it as a lease/purchase deal. I can cover my cost, put cash in my pocket from down payment, 1 to 3 years to close the deal. If they close I should make a nice piece of change. If they walk I will do it again.

I can move to small rental untill I am able to do better. If I get many calls from possible buyers I will start looking at other ways as you guys suggest to obtain properties and build from there. Hopefully my successes will out weigh my
no so’s. I call it the “Hail Marry” approach. I’ll toss it up a see if anyone wants to catch it.

Anyone have suggestions or any experiance that I could tap into. I need help with the following details:

  1. Proven key words or phrases and best media to advertise for quick response. What to say and not to say at first contact.

  2. Best contracts/agreements and riders, etc. for maximum protection and quick default solutions

  3. How best to screen applicants and what factors best indicate good payers vs. bad ones. Obviously applicants will have some negitive credit history or they would not need my assistance/time to buy a home.

  4. Any legal pitfalls I might want to avoid or prepair for.

  5. Any suggestions or experiances you have are most appriciated.

  6. How much over todays market value should I
    set selling price?

    I purchased in 2000 for 149k.

    Refid 2004 now owe 159k. appraised @ 173k

    Recent market value analasis placed it 189K

    Two new subdivision in walking distance are almost
    complete homes starting at 200k and up.

    Best school district and new elementary school. two miles to interstate 85 and 30 miles to Atlanta…

    One home within a mile recently sold for 750k.
    Several homes close by at 1m or more.

  7. Is owner financing possible with me as the note holder?

Lots of questions I know, any answers to any one would be of great interest to me.

Thanks,

Karmrd

2

so where is the proerty located and how many payments are you behind ?have you figured out an amount on what you will sell it for ? that will free up some cash for you ?

3

This is a very interesting problem, althought a misserable situation for you, interesting nonethelesss, and maybe we can help you.
First give us a good understanding speciiically what your debt is at this time. Then we can make some suggestions. The worth thing you can do is to despair. Here are a few good ideas:

  1. Do you have family and can you borrow from them? You will have to be completely honest with them to get any help. They may even take a loan to save your house from being forclosed.

  2. Can you rent 1 or 2 rooms in the house?

  3. If you have some equity in the house, try to find out a lender that works with high risk loans ie bankrupcies, low FICO score and so on. There are many such institutions willing to make a buck in order to help you.

  4. You have a huge advantage BECAUSE you have a job an therefore a local BANK may be able to take a chance on you. Go and talk to a few of the SMALL banks in your local area for help.

  5. Do you have friend that may be able to buy an interest in the house ie an unsecured note for 6 months to a year until you are back on your feet. Try it!

PS: Foreclosure is the worse thing that can ever happen to you!

Good luck

4

Please see additional info I was adding while you guys where reading. Some of your question are answered there.

I do not want to involve family if you know what I mean.

I will not let it go to foreclosure even if I have to sell low. But I think I have found an angle that just might work. What do you think of my Lease/purchase plan? If the right couple comes around I can work out some of the problems down payments and terms.