89k Balance on house thats only worth about 50 in as is
I received a call today who's husband passed away 2 weeks ago. She has a 3 bed 3 bath. She does not live in property but her son does. The loan balance is about 89k and her house is worth about 50k as is.
How should I handle this situation? subject to, lease option, etc.
Thanks in advance bigger pockets community.
Some might say short sale. I say, you don't need to catch a Carp just because you can.
How do you know it is worth $50K did you have someone to appraisal it? There are deals all over Georgia with no liens and off the market.
Joe Gore
@Jon Klaus so its better to walk away from this one?
@Account Closed well it needs some repairs and county has it valued at 40k. This county usually under values property. The comps in the area are around 93k. I have not had it appraised. Just got the call about 10 min ago.
"Jon Klaus so its better to walk away from this one?"
I would. Much easier if you find a deal with equity.
@Jon Klaus Thanks for the advice. Ill most likely keep it moving and hope my phone continues to ring.
Keep marketing and your phone will ring.
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My advice:
Get comps for ARV
Get a builder in.
Maybe do a JV w the seller
Provide rehab services in the form of a JV Agreement, use a private lender, list it with an agent as soon as the rehab starts, get private money for the rehab costs, get a lien against the house for the rehab costs, including interest, and make $10K for a JV fee to fix the problem.
@Brian Gibbons Great idea! funny thing is, thats actually one of the strategies I have written down that i would like to take advantage of. Thanks for reminding me that i have more options.
@Brian Gibbons but now that i think about it, how would I make a profit on that if the arv is 92k and the loan balance is 89k. What if it needs 15k in repair. Not really any room to move around b/c the loan is so close to market value. Plus she is 4k in arrears.
Not sure if tho shells, but she filed chap 7 bankruptcy over 7 years ago and the bank said she isn't really responsible for the pmts. I guess she has an option to just let it go.
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if there's no room in equity look at short sale vs ch 7 bk
@Brian Gibbons Ok thanks, Ill look into that as well.