Posted by Barry on September 07, 2005 at 02:54:06:
Hi Angela,
Where is the property? I am in NYC, please email me I may be able to help.
Thanks
Barry
help - Posted by angela (darby)
Posted by angela (darby) on September 06, 2005 at 22:21:51:
hello everyone i am having a problem with a deal that i am doing i have clients that are in foreclosure the house is worth 99,000.00 the bank is allowing us to buy it at 65,000.00 the equity is there, but there is one condition my clients are 70 and 75yrs old. we don’t want to put them out on the street. we want them to be able to rent from whoever buys this property. the client can only pay 600-650 dollars towards rent, they both get social security. the problem that i am having is that so far the investors that i have been speaking with are vultures, they are cold and it just scares me that they will not let these people stay in the property, what can i do to make this condition a stay for my clients. time is of the essence
angela in darby
Re: help - Posted by Natalie-VA
Posted by Natalie-VA on September 08, 2005 at 13:29:05:
Hi Angela,
I received your off board email. I am not judging you. In fact, I said that I appreciate your compassion. I apologize if my tone offended you.
My point is that if you are so concerned about these people, help them sell their house and collect their equity themselves. It sounds like they are really in dire straights and that you might be able to do them a huge favor by helping them get market value for their house.
If it’s not possible to assist them in this way, refer them to an attorney. They might even be better off letting it go to auction and collecting the leftover proceeds. Selling it pre-foreclosure might put them in a worse position.
I don’t know…just trying to mention some options.
–Natalie
Re: help - Posted by Natalie-VA
Posted by Natalie-VA on September 08, 2005 at 11:15:41:
Angela,
Are you their real estate agent? I ask, because you are referring to them as your “clients”. If you so concerned about these people, give them their equity to live off. It seems that you want the equity for yourself, and then the new investor who buys gets nothing. I appreciate your compassion, but am I missing something?
–Natalie
Re: help - Posted by John B. Corey Jr.
Posted by John B. Corey Jr. on September 07, 2005 at 11:54:49:
Angela,
Two suggestions.
-
You buy the place and then deal with it as you see fit. It is your desire that they remain so in a polite way put your money where your desire is. Get creative on the financing and make the deal happen.
-
Speak with a lawyer about creating a life estate (I think that is the term). The idea is the couple can sell but continue to live there.
The life estate is not magic. The future value is weighed against the income and lack of liquidity. This means the property has decreased value until the couple are not longer resident.
You feel that the investors are vultures. Hence you are not able to see a way out of this. Maybe it is your perspective that is the problem. Try to think out of the box. Understand that some investors will just wait for the bank to finish the foreclosure and then pick it up. The bank does the eviction and you do not get a commission. So, do not draw lines in the sand that you do not want to defend. If your clients get evicted after a foreclosure it will be even harder for them to find a place to rent.
John Corey
Chelsea Private Equity LLC.
Re: help - Posted by John
Posted by John on September 07, 2005 at 05:09:53:
Angela,
You sound like an agent. It is not that investors are cold,and heartless. It is the lawsuit, sue happy mentality in the country that makes this impossible.
If an investor bites into what you are asking for. An attorney, could convince them that that they were victoms for fruad. If it goes to court, the judge will reverse the sale and award damages to these people from you and the investor.
I would suggest that you find an investor to buy this one and lease these people another property they own.
It will protect everyone from a messy situtation.