Posted by IdahoRob on November 27, 2000 at 24:00:01:
I think you are on the right trail with foreclosures— however this might be the wrong game plan.
Before you go to much farther on this house start adding up the cost. One of the ones I don’t see you listing is the atty fees ---- will be on top of late payments.
Then fix up cost. And holding cost— how long before the home goes to auction??? Someone will have to make up all the back payments plus atty fees before this goes to auction, then—have the owner move — clean up and do repairs before you can L/O this----- then your new L/O buyer will have to have enouph in option fees to cover the back payment fees and showing the payments are all caught up. Then where would your profit come from ???
Trying to show you that this may not be the best of deals to work.
However foreclosures are good–and I would look for homes that have had a mortgage in place for at least 15 years before I would start getting too excited about going after it. And no new seconds have been added in resent years. In that old of mortgage— the home would increase in value, taking care of what the back payments due would more than likely eat up if this was say a 5 year old mortgage.
I am pointing out some of the pit falls—I know you are also looking for advise on discounting — this could make the deal worth while for you—however you will need to show the bank where they will get there money NOW out of the property----so I think trying to sell a L/O with the bank getting paid 2 years down the road —would be like hitting a brick wall very fast. I will be following this thread and just maybee someone has a new angle for pitching L/O’s and or discounting—lets help him out with some thoughts.