Posted by vern on January 16, 2003 at 11:28:29:
Craig,
Will the mortgage company have a way of calling the loan due?
What can/would you do? - Posted by vvaughan(MD/DC/VA)
Posted by vvaughan(MD/DC/VA) on January 16, 2003 at 08:21:13:
Here is the scenario:
House needs 15K to bring mortgage current. It goes to foreclosure on the 25th. Payoff is about $147K, house appraises at $192K and comps are $185K - $192K. Lender is Washington Mutual.
What are my options. I have enough to bring it current.
Get The Deed - Posted by Craig-SoMD
Posted by Craig-SoMD on January 16, 2003 at 11:18:51:
If you are going to make up those back payments, you need to get the deed. Have him put the property in a land trust, transfer the beneficial interest to you, make up the back payments, and give the owner $500 to get out of the house. Then, the best course of action is up to you - retail, lease option, or whatever else you come up with. I would not make up those back payments unless you will have the deed.
Craig
Re: What can/would you do? - Posted by Peter_MD
Posted by Peter_MD on January 16, 2003 at 09:18:17:
Vvaughan(MD/DC/VA):
You don’t give us enough information to make a solid recommendation, however, Jennifer gave you a good one.
For example, can it be rented immediately once the owners/sellers are out of the property? Has it been inspected to ensure items such as electrical, plumbing, heating, etc. are in at least working order? Why do I ask? Because, in my 7 years experience, pre-foreclosures have a high incidence of deferred maintenance with a lot of things that are broken or just plain don’t work.
Have you done a title search (at least a preliminary one with a title company)? What would you say or do if you put $15,000 into the property to get it current and find liens, home equity, and other debt attached to it?
I highly suggest you try to contact someone from your real estate club (if you know one) and see if they will be willing to share in the risk and profit, while sharing their experience and knowledge.
My feelings always tell me you have a chance of (1) hitting a home run (slight chance) or (2) striking out (much higher chance)…just for the reason you asked the question on this board, you need to know what you need to know.
Good luck to you…
Re: What can/would you do? - Posted by Sean
Posted by Sean on January 16, 2003 at 09:12:44:
You could also negotiate with the bank and seller to take over the property. (Provided of course you have good credit) You could try L/O from the bank, who knows they might go for it… or negotiate with them to take over the mortgage if they are willing to forgive the back payments and penalties… (could even ask them to discount it possibly).
Never know what a bank might or might not do. Best option in my opinion, is to buy them out, IMHO. Bank will take cash to get out of a problem mortgage far more often than not, and will generally discount significantly, especially if the property needs rehab work. Of course the nicer the property, the nicer the neighborhood, and the more equity the property has, the incentive for the bank to deal is less.
Be creative. Worst thing a bank can do is say NO… but you’ll never know what you can get until you try.
Re: What can/would you do? - Posted by Jennifer
Posted by Jennifer on January 16, 2003 at 08:32:19:
I see 2 possibilities here right away. First- bring it current if u can and then turn and flip it for retail value (if it is in good condition). Possible profit of $30k.
Or- to move it fast- you could L/O it as well. In the long run you might be able to make more money this way- it will just take longer.
Keep us posted!