I am new to Real Estate investing and as fortune would have it … I have a foreclosure deal fall into my lap. The situation is Loan payoff of 160k, FMV 240K appraised last year, Homeowner isn’t behind on payments at this time but has used up savings to keep notes current.The Owner wants out and about 10k for moving expenses. This leaves about 70k in equilty, no secondary liens but will confirm with title search. I’m trying to find an attorney that does foreclosure litigation on the buyers behalf… No luck finding one so far, I’ve called Attorney Offices and title Companies. Does anyone have a suggesstion on where to look and any advice on the best strategy to use to close this deal. I’m assuming that it may be possible to negotiate even more equity in the property $90-$100K,if the short sale is done properly. Please Help!!!
MCChatmon - before you find an attorney I suggest you talk with another investor in your area or find a realtor - a 240k appraisal from last year is not a good number. You need to have a good FMV estimate done now. As you know house prices vary significantly over time. The 240k from last year may be worth less than the loan payoff now… Check the number.
Secondly - as you mentioned this deal fell on your lap… I would be very carefull - if the wholesaler is giving you last year’s appraisal number to try to sell the deal to you he may be trying to mislead you. Again, check the numbers.
Thirdly - what makes you think the homeowner would agree with a short sale if he has that much equity in the house? I wouldn’t. Would you?
Hope this helps. Good luck!
If not in foreclosure yet, do a FSBO with seller finance. Find an end buyer. Qualify end buyer.