Possibly a Prospect! Need some Help!!! - Posted by B

Posted by Tim Fierro (Tacoma, WA) on December 30, 2002 at 02:13:03:

If she is not behind on her payments and $98k is the balance, her monthly mortgage payment is going to be less than what you will want to charge her if you bought the house. How will she pay the new higher mortgage to you? This is assuming she is not behind on payments. If she is behind on payments, your $98k mortgage balance may be more with the back payments and any fees which will lower your profit.

Some things to think about.

Possibly a Prospect! Need some Help!!! - Posted by B

Posted by B on December 29, 2002 at 17:31:18:

I am a brand newbie with access to funds.

I have found a pre foreclusre with an 98,000 mortgage on the home. THE Fair Market Value is around 120,000.

It is a very nice home with a 300,000 home just built right beside it.

Here is the situation: I am wanting to help this family. She wants to remain in the house. She has moved her 3 kids 3 times and is willing to do anything no to move again. She has filed bancruptcy on a business, so her credit went from being great to bankcrupcy credit. no liens or back taxes!!

The ideal situation would for me to pay off the mortgage in her name, and then resale the property at FMV to her. How does she get funding, or how can we work this deal out.

My only worry is in by helping her, I do not want to create a problem for me.

Please get back to me when you get a chance.

Re: Possibly a Prospect! Need some Help!!! - Posted by Kristine-CA

Posted by Kristine-CA on December 30, 2002 at 02:45:04:

Brian: if this seller is in pre-foreclosure, then it sounds like she is having trouble making the current payments? What’s the story with her not being able to bring them current?

If you don’t know how your buyer will get funded, then this might not be the right time for this kind of deal for you. Regarding Tron’s suggestion that you create a note to sell at a discount: this is not such a hot idea for someone with no cash for a down and with a recent BK. You might find that note hard to sell for any price without seasoning.

I commend your desire to help the seller, but am curious what you know about the seller that makes you think she can afford to pay you more than what she already owes?

Sincerely, Kristine