I’ve got a 4 bedroom 2.5 bath under contract for 20 days for $66,000. It’s appraised at $73,000 four months ago. The thing is…the seller is two months behind on payments, has already declared Chapter 13 bankruptcy, and is leaving the area in 15-20 days due to him separating from the military. He’s not the least bit concerned about making much profit (he owes $65,000 at this time) and is fine with just leaving the area and letting the lender foreclose on the house since he’s already declared Btcy-what’s he got to lose?
I know there’s a profit in here somewhere but I’m not sure how to go about sniffing it out. My immediate solution is to assign this Option Contract to an experienced investor. But what if all I can find are inexperienced investors that need me to explain things to them in order for them to make a profit? What I’m trying to get at here is…if my Plan A to wholesale flip doesn’t pan out, what’s my Plan B? How does one go about making money in Real Estate with a seller who’s behind on payments and is leaving the state in two weeks? An attempt at a Short Sale? I’m on a time crunch here. Any help would be appreciated.
Try and so a SHORT SALE. Are there any repairs needed? Have the lender sign a Authorization to release form. You need more documnets then this. Let me know if you need help
One question about the Short Sale option. I already have this property under contract for the 66K, so a lender accepting a smaller amount wouldn’t make much of a difference for me. It would STILL be worth the 73K and I would STILL have bought it for 66K. Are you saying once I get the lender down bit…that I go back and renegotiate with the Seller for less than 66K?
Yes you can