Posted by Zack on December 17, 2002 at 21:24:24:
Yes, but only to a buyer who will pay cash or get a new mortgage, so that the seller’s mortgage gets paid off. I would not just assign the contract to them.
short sale, discount mortgage, or subject to? - Posted by Scott
Posted by Scott on December 16, 2002 at 13:13:33:
ARV 130+
Repairs 20
Mortgage 71+/- (household)
Approx $2500 to bring loan current
Owner is approx 3-4 payments behind due to health issues no foreclosure proceedings have been started. Owner only wants moving money, and I have the authorization to release info signed.
Deal worth doing, but
1.How about buying the mortgage at a discount or
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Bringing the mortgage current, recording the deed and using the existing mortgage in lieu of hard money and pay for the repairs myself.
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Short Sale? But will take some time and the owner apparently has another house somewhere that she owns free and clear.
Suggestions Appreciated.
Re: short sale, discount mortgage, or subject to? - Posted by Zack
Posted by Zack on December 16, 2002 at 20:23:27:
If she has a decent interest rate and you don’t mind paying the 22,500 plus moving costs out of pocket you could take it subject to if it will cash flow from a lease or lease option, but that’s alot of money to come up with. Or you could try a short sale if you could borrow enough to do the repairs, but if I was buying it I would probably just take it subject to and flip it for a few thousand, but that’s just me.
Re: short sale, discount mortgage, or subject to? - Posted by Marc
Posted by Marc on December 16, 2002 at 14:16:11:
I don’t have experience with buying the mortgage, so I can’t comment on that.
The short sale is a good idea, if you want be personally liable, even with hard money. If you can get for no more than 58k, that would be OK. The two roadblocks with the bank are going to be convincing them of the price and convincing them to go with it now, instead of trying to set up the seller on a repayment plan.
My choice would be to get the deed, and if the house is habitable, offer terms to a tenant buyer to fix it up while they live in it. Either offer it a bit below market value, or give them a credit towards their downpayment (sweat equity). In Charlotte, NC I get a lot of calls of folks that want to get into a house, no qualifying, that they can fix up while they live there.
I guess you could rehab it yourself, with your money, but if I weren’t going to sell on terms, I’d rather wholesale it for $5k.
Marc
Re: short sale, discount mortgage, or subject to? - Posted by michael
Posted by michael on December 17, 2002 at 20:53:04:
You flip suject to deals? Are you doing this with the full knowledge of the seller?