Sandy - Thanks for the response. I’m on to a deal here for sure. The father and son are very motivated. The lender however seems content to just sit back and let them default. It’s a mortgage company so I don’t understand their lack of motivation. They’ll easily eat $5K by the time they foreclose and resell through a realtor. One idea I’m kicking around is to go to the lender and ask them to lend me $40K (25K purchase price and 15K rehab $). I have excellent credit, strong balance sheet and excellent job income. They would essentially be replacing a non-performing loan for $39K with two loans worth $40K. I’d be in the place with after rehab cost of $40K. Any ideas? Is this something a lender might go for? The rehab consists of new kitchens and baths on each side, carpet, paint, etc. Normally, I do the kitchen and baths myself (far to expensive to sub-out) and hire out everything else - nothing I haven’t done before. Anyway, thanks for your time and good luck in your endeavors.
Hi everyone - I’ve come across a duplex with a FMV of $60K. Needs $15K in rehab. Elderly owner was moved by son into an apartment. The son has been given power of attorney to sell the duplex. The duplex has a 1st with a balance of $39K (payment of about $400 per month) and a second with a balance of $4K (same lender). Son has told me that no further payments will be made on the property by father and son does not have the money to assist. They have no money to put in if they do a short sale. They want nothing but to get rid of the property and the loans and I asked if it was okay to speak to the lender. Called the lender who is aware of the situation and the fathers intention to stop payments. Lender said he’d release the 2nd but couldn’t discount the 1st. Is there a deal here? I feel that if I could get the property for $25k it would be a good rental after rehab and could produce $950 per month in rent. Thanks in advance.