Wow, check out this deal.. Tell me what u think

“I’m thinking of letting my house forclose-- do you want to buy it for my mtg amount?- I KNOW its worth more then my mtg but I have a neg amor mtg–and I want OUT-- we are in a lawsuit-- ILL PAY MY LAWYERS BEFORE MY MTG… ITS IN STOCKTON NJ-- 1ST MTG IS 970,000 & 2ND IS 175,000----- 8 ACRES, BUILT 2003-- 6500SQ FEET-- 7 BEDROOMS --7 BATHS-- 6500 SQ FEET— 6 CAR GARAGE-- 2 APARTMENTS WITH OUTSIDE ENTRANCE-- NICE… YOU WANT IT? ITS YOURS…”

This is the email word for word… would you pursue it in these times and conditions?

Would you be planning to live in it? Wholesales it to someone else? Lease option it? Doesn’t need rehabbing, probably.

So…what’s your exit strategy?

You’d need to figure out how much equity. Also, the fact that it’s a neg. am loan, you want to make sure what you’re taking over.

On that expensive of a property, there would have to be lots of equity before I’d consider it.

Falling market + negative amortization loan = negative equity (usually).

Also, couple that with the fact that its hard to move luxury homes in a down market and this sounds like a loser. Get us some hard facts on the comps and we can help you figure out what if anything you should do with it.

I love this part. Desperate sellers always think there is more equity than is really there, and they over estimate the market.

Yeah, I looked right past that when I sized up this deal. Sellers are right about as often as I win the lottery.