Posted by Bill Jacobsen on May 28, 2007 at 11:14:54:
If the current debt is more than the house is worth the only thing I would know how to do is a short sale to the bank. That is probably only possible if she is behind in making payments.
Bill
what can I do with this property? - Posted by Debra
Posted by Debra on May 27, 2007 at 19:09:47:
A friend of mine has a nice little 2 bedroom home in the country that has renters in it. My friend has moved back to Virginia and says I can lease/purchase the house. The payments are high at $700. I told her I would take the house if she could refi and lower the payments to $500.00 or so. Is there a better way to obtain this house creatively? She will do whatever I think we should do as she was going to let the home be repo’d. It is on about 1 ac
Thanks for your help.
Re: what can I do with this property? - Posted by Bill Jacobsen
Posted by Bill Jacobsen on May 27, 2007 at 21:02:56:
A Lease/purchase is great depending on the monthly lease rate, cost of option, and the price of the property. You also need to know the rental rate if you intend to continue renting it.
Whether she refinances or not is not a relevent factor to you unless she is going to change one of the above rates or prices. Without more information it looks like you can use any of the tools regularily discussed on this forum. The bottom line is that if you over pay for the property none of the tools will help you.
Bill
Here’s some infor regarding present financing… - Posted by Debra
Posted by Debra on May 27, 2007 at 22:59:41:
The home was once refinanced at 120%, so I guess in a way, it is upside down, so to speak, with its payment and yes, she was going to finance to get a lower rate. I can get comps, but the home is overfinanced at 120%…
Re: Here’s some info - Posted by michaela-CA
Posted by michaela-CA on May 28, 2007 at 20:03:58:
Debra,
how is the market in that area? Something may have been lighly leveraged years ago, but if there’s been an increase in the market values since, then it might still be a deal. What does she owe and what is the current value?
Michaela