Posted by nimrod on April 11, 2004 at 22:11:35:
Winner!
NEED HELP ON HOW TO STRUCTURE DEAL - Posted by Ananette E
Posted by Ananette E on April 11, 2004 at 15:45:31:
Hello everyone I’m a begginer to investing in real estate I want to invest in real estate but I have not started yet. I have seen an ad in the paper I haven’t called back yet.
The first ad says:
Bank Owned Duplex 2-2br/1bt,centtral air, updated kitchens, repairs required, vacant, asking $157,000 (SOLD BY REAL ESTATE COMPANY)
Can someone tell me what I should do you think the bank will let me assume the mortagage it had on it and the bank will pay for the closing costs. I have very very little cash to no cash and me and my husband don’t have the best credit what isthe best way to make an offer and what should I do. PLease HELP HELP also do someone tell what forms if any would I need to obtain.
Re: NEED HELP - Posted by DaveD (WI)
Posted by DaveD (WI) on April 12, 2004 at 09:54:40:
You can’t assume the existing mortgage because it was extinguished by the auction. That program only works before the foreclosure sale. The bank now wholly owns the house, instead of merely having a claim against it. New financing is required.
Even though Phil is right on priciple, I wouldn’t rule out someone (sadly not you) obtaining financing from the original bank. Why? It does get the problem off their books. It goes from a liability (reo) to an asset (note receivable) on their books. Always worth a try. In this game though, they will undoubtably want 20% down, yada yada. They don’t want a snaky deal, they want a solution. REO is really the domain where cash is king. Sorry.
Re: NEED HELP ON HOW TO STRUCTURE DEAL - Posted by Wm-Pa
Posted by Wm-Pa on April 11, 2004 at 17:30:13:
Annette,
I don’t think this deal is for you right now. When you make an offer with this type of deal you will usually be required to show a proof of funds letter. This shows the realtor or bank that you are qualified for financing for the deal, at least in my state this is a requirement.
I also don’t think the bank will pay for the closing costs.
The bank wants its money NOW, so a subt2 or lease option will not work. For this you will need a motivated owner who is willing to work on YOUR terms.
If I am wrong, I am sure you will read about my mistake when the Pros reply to my post.
Good Luck,
Wm-Pa
Re: NEED HELP ON HOW TO STRUCTURE DEAL - Posted by anon
Posted by anon on April 11, 2004 at 16:14:03:
okay, you only told us twice. I heard if you tell someone something SEVEN times. They’ll finally listen. KEEP GOING!
anon
Re: NEED HELP ON HOW TO STRUCTURE DEAL - Posted by phil fernandez
Posted by phil fernandez on April 11, 2004 at 17:48:09:
Wm - Pa you’re right on with your response.Also the bank never wants to see that property again, so chances are even if you had good credit and a downpayment, they wouldn’t finance this particular property again. They were burned once. You’d have to get another bank to finance.
Re: NEED HELP ON HOW TO STRUCTURE DEAL - Posted by nimrod
Posted by nimrod on April 11, 2004 at 21:35:39:
find a hobby
Re: NEED HELP ON HOW TO STRUCTURE DEAL - Posted by anon
Posted by anon on April 11, 2004 at 21:58:41:
You are my hobby