The deal I have is a SFH that the owner owes and is getting behind in payments. There is little - no equity in the deal so I would like to get an idea of my options before I refer it out as a short sale. The bank is willing to do a short sale. I’m curious to find out what options I have as far as sub2 or some kind of owner financing or taking over payments. This area of investing is new to me, but if there is a way for me to work this deal other than referring it out as a short sale, I’d like to hear it.
It is a SFH that doesn’t need much (if anything) as far as repairs. I believe the value to be about 80k or so. I’m not sure what they owe yet because the husband who I talked to wasn’t living there anymore and didn’t know the amount owed.
Hey there ,
my opinion is u need to know everything about the loan on this property ;is there a junior mtg on the property ?Since the husband doesn’t live in the house u need to deal with both owners(husband & wife ) at the same time.House has no equity u said so a short sale would be ur best option unless there is a junior mtg ,in this case u can buy the property subect the existing financing plus u can make ur offer contingent on bank approval of a short sale for the 2nd loan.U need to find out if the house may have equity base on the purchase price .Good luck
There is no way to tell what the equity is until you know what the mortgages are and how much in arrears the payments are.
If you start talking a deal be sure you follow ballgum’s suggestion to talk to both parties otherwise you could end up with a big problem.
Good luck,
donrock