Situation
I'm currently looking to buy and flip homes.
I just got off with a home owner who is facing forclosure and under distress. The home is estimated to be worth $225k and they owe $92k on the loan. The home went up for auction this July and did not sell. It is going up for auction again in September. The home owners are still living there and are looking for any help.
I'm interested in buying the property. How would it work? Here is what I'm thinking:
I buy the property for a fair deal, say $150-$170 depending how much work the property needs. The home owners make out in the deal because they can pay off their loan and end up with a net $50k cash to help them get back on their feet. Then I sell the home and make a profit. Can it work like this?