Posted by gary on August 23, 2004 at 21:06:00:
great point! I did not think of this. thanks
subject to deal. need professional help! - Posted by gary
Posted by gary on August 23, 2004 at 16:01:52:
Hello All,
I came across a pre-foreclosure that I need help with. This is my first deal and I am trying to figure it out as i go. Seller needs to sell house asap. 2 months late on mortgage and property is already in forebearance. The deal looks doable but I am nervous about putting any money out while the seller wants to stay in there for 2 months after the house is deeded over to me. I would make up back payments and get the deed. Is this normal to stay in the house? will i have a problem getting tenants out if they can’t move within 60 days?
Here is the particulars
280,000 arv
120,000 liens and mortgage
90,000 owner wants on the back end when property is sold. does not need right away.
5,000 behind on payments of forebearance. 2 months x2500
5,000 2 additional mortgage payments. wants to stay in the property for 2 months after deal is put together to find apartment and get 20 yrs worth of house ready to move. forebearance is up after 2 months and payment is back down to $1500.
9,000 wants upfront when ready to move out for downpayment on apartment and other moving expenses.
If… - Posted by David Alexander
Posted by David Alexander on August 23, 2004 at 22:28:35:
You let the money leave your pocket before the seller moves out… I’m bettin’ you’ll be out more than the 5k…
No money leaves your hand till he moves out… Stay in control of your deal…
Not to mention… I don’t know your area… but, in mine… it could take up to a year or more to move this house…
So, it adds up before you start… 5k, his past payments, 5k more while he stays comfortable while you want a deal so bad you can taste it, 9k when he’s out… The meters running…
19k cold hard cash before you’ve taken possession… 90k on the back end… and possibly a year or so of pain… $1500 monthly to protect your original 19k…
Not to mention any cosmetics and upkeep this house needs when it becomes vacant…
My calc says another 18k…
So, here’s the final numbers… 280k selling price…
18k payments (we ain’t countin’ other holding costs)
19k Upfront
90k backend
120k Mortgage
247k…
Now, lets go from the other side… top 10% is air…
Realtors fees, closing costs, glitch in economy after election time… etc, etc…
Your profit will be 5 - 10k…
Sounds like he’s in control of your game…
David
Well` - Posted by E.Eka
Posted by E.Eka on August 23, 2004 at 17:23:09:
This owner want 90K on the back end, yet he’s behind on his payment. It’s your deal. if forebearance is up, he’s walking a tight rope. In the same token, you can still get some decent money if the deal is done right.
Re: subject to deal. need professional help! - Posted by Trisha
Posted by Trisha on August 23, 2004 at 16:38:44:
Gary,
I have seen some success stories regarding pre-foreclosures in the “Success Stories” part of creonline that might help.
I am totally new to real estate and was wondering how you find pre-forclosures. How do you?
Thanks,
Trisha
Re: Well` - Posted by gary
Posted by gary on August 23, 2004 at 18:39:44:
I agree that I should have total control of the deal but competition is starting to dictate where the deal is going. I guess i just have to make an offer and get it under contract asap. thanks for your help
Re: Well` - Posted by Trisha
Posted by Trisha on August 23, 2004 at 18:27:15:
I’m a total newbie. What is forebearance? How does it work/what does it mean? Thanks!
Re: subject to deal. need professional help! - Posted by gary
Posted by gary on August 23, 2004 at 16:51:07:
I am new also. Once you realize you are in the marketing business as much as the real estate business, than you will find the deals. it will cost some money to advertise but it will pay off if you are serious about investing. newspapers, fliers, signs, ect. don’t be afraid to spend money
Gary
It’s easy… - Posted by David Alexander
Posted by David Alexander on August 24, 2004 at 22:31:04:
to armchair quarterback the ones where…
You’ve “Been there, done That” 
David Alexander
Re: Well` - Posted by E.Eka
Posted by E.Eka on August 23, 2004 at 19:20:46:
Forebearance = the lender giving you time to make up the back payments.
And - sometimes - Posted by Sharon
Posted by Sharon on August 23, 2004 at 20:16:50:
the payments are added to the end of the loan,interest wich actually can lead to owing more than worth. One item to find out before taking over. S