Posted by BankRobber on January 05, 1999 at 23:51:56:
here’s one idea:
Loan Roger 4K secured by a Deed of Trust(have him bring 1st loan current). After 1 month or so have Roger default on your loan. Take title to property via a Deed in Lieu(?) of Foreclosure (current lender has to allow you to assume loan). Give Roger an additional 4K when he moves out.
We gotta HELP Roger! - Posted by Aquanaut
Posted by Aquanaut on January 05, 1999 at 23:12:24:
Roger is the guy who has been begging me to buy his house these past few days. He has a house he ownerfinanced 7 yrs. ago for $35k @ 12.5%. Lately Roger has not worked much and the private individual who holds his note is foreclosing on him. Roger has a job offer in his wife’s home state of Ohio and needs cash to move and get set up up there ( we’re in Texas). I spent most of my cash at the foreclosure auction today and can’t come up with the cash for Roger’s house now. We have talked much on the phone and I have seen the house, it needs minimal repairs which I may not even do. I had planned on lease optioning it to a new buyer and want them to do the minimal repairs. Roger knows of a few interested parties who weren’t able to qualify for conventional financing and I had thought to L/O to one of them quickly. I haven’t talked to the noteholder, he is a local guy and Roger thinks he would gladly foreclose and resell the house as opposed to discounting his note, but I told him to ask anyway. Also, he has several clauses in his contract such as he must approve the new buyer (me) and the note cannot be assumed/assigned etc. So, here’s the numbers:
FMV = 42k
Will sell = 33k probably 32, he would probably come down a little more but I really would like to help the guy win/win and this does just give him moving expenses etc.
Total payoff including arrearage = 23,665 (20,665 + arrears)
Taxes due = 477
There is a realtor involved ( a snootish one at that ) w/ 6% commission agreement (approx. $1980)
House will rent for $575 on a l/o
We have a time constraint, the sale has to be finalized by the 11th of Feb. I can come up with 30% cash but I haven’t found a true hard money lender yet, though I will be looking harder tommorrow. I am closing on another house (rehab) tommorow that’s being funded by a local bank, but I’m not sure how they would want to take on another loan so quickly, and regular mortgage brokers are too slow.
So, there it is, if I left anything out, forgive me, I am admittedly a rotten essayist. Any and all suggestions much appreciated.