vacant house - Posted by Esther Smith

Posted by dewCO on November 19, 2000 at 18:30:27:

Not totally up on all the ins and outs of preforeclousres myself, but do know that if you bring the loan current, you need the estate to get the bank to allow it to be reinstated, writing. Just because you pay it current, doesn’t mean the bank has to stop foreclosure! (They might allow it in this case, because of the sudden death.)

First YOU need to know what it’s worth. Then the executor should get the permission to reinstate the loan, and get the dollar figure that will do it. Yes, thee might not be much room here in this one if the $115k figure is the loan balance, because there are usually $5-$10k in fees and late charges when it’s this close to the foreclosure sale.

From all the posts here, you don’t usually get any deals at the sale itself. You need to get these, before the sale and the earlier the better, because othewise, the amount needed to bring the loan current or to even pay it off, is considerable. Then it just depends on if there is any equity in the deal.

You have lots of mentors here, just keep posting your questions. Better to have lots here and than one, who may be busy when you need an answer. Good Luck

vacant house - Posted by Esther Smith

Posted by Esther Smith on November 17, 2000 at 16:33:53:

Hi folks, I might have one of those run down gems here.

I am struggling through the Carleton Sheets program and all of a sudden the house next door becomes available (It must be a sign :0) Our neigbour committed suicide in February and the house has been vacant now for about 2 months(he had a roommate).
From the outside it looks like it is not in bad condition but needs some cosmetic changes. His ex is the executor of estate and I have contacted her.
She will show me the house tomorrow. He bought it in jan 98 for 126,000. I called the tax county office, the amount due is 115,880 and appr 1,400 in taxes. Does that mean there is only about 10,000 equity? It went into foreclosure in June and will be auctioned in December. Is there still a deal to be made here. Not much equity and already in foreclosure status. I already have a renter ready to move in if I am able to purchase it. I have no cash but own my own home and could do an equity loan or something. I am pretty much overwelmed with all the different creative finacing techniques and would appreciate someone to walk me through this first purchase.

Re: vacant house - Posted by Bill Scott

Posted by Bill Scott on November 20, 2000 at 07:19:24:

As Dew said, get the bank to commit IN WRITING to reinstate the loan and what the terms to do so would be. There’s not a lot of equity here, but if you can rent the property out for positive cash flow then you’re probably going to be O.K. One word of caution is about the suicide—did he do himself in inside the house? If he did, you will have to disclose that to any future buyers and some folks just won’t buy a house in which someone has died.

Good Luck!

Re: vacant house - Posted by Esther

Posted by Esther on November 17, 2000 at 16:54:33:

I want to thank Ed for his reply on the other message board. He suggested I moved my ? overhere so I could get a bigger response.

I have been able to locate the bank in the mean time. They do not own it yet. They said I could buy it from the Executor of Estate if payments where made up to date. That is all the info they were willing to provide. She does not have that kind of money. Should I make payments up to date and do a lease option? or wraparound sale?
Is this uberhaupt a good time for me to try to purchase this one?
Or should I wait till the auction and then contact the bank to see if I can strike a deal? (IF the bank is the one winning the auction)

I would greatly appreciate some seasoned advice. I am also looking for a mentor … someone who is willing to provide me with answers now and then. I am doing a lot of research myself but sometimes I just get stuck.

Thanks everyone

Re: vacant house - Posted by Esther S

Posted by Esther S on November 20, 2000 at 09:34:05:

Hi all, thanks so much for responding, these boards are great and the comment about “better to have more mentors on this board than just one who might be busy” hits the spot.

I have been inside this weekend and it has great potential. It just needs new carpet, new paint etc., just cosmetic changes.
He did not kill himself in the house, it was a crime of passion deal at his former girlfriends house.
I spoke to the Executor of Estate (his long time ago ex, who he shares a daughter with) and I asked if she was interested in a lease option if I made the payments up to date, she already signed papers that she was not interested in purchasing it and just wanted to get it over and done with.

I guess my next step is to wait till the auction. If the bank wins the auction I’ll try to strike a deal.

I’m sure I’ll be posting more questions in regards to the auction etc.

Thanks again all