I have a contract from a motivated seller that was 4 mos. behind. It was a purchase contract with it contingent to me finding a buyer. I was trying to find someone to rent to own this house, Here is the scenerio.
Purchase from seller:
5 BR, 3 BA on 3 acre.
House was recently renovated from insurance money.
Looks new and ready to move in.
Buying for mortgage amount of $187,000
Appraised for $250,000 in 2008.
PITI of $1,850 mos.
2 yrs left of Prepayment penalty.
Sell to buyer:
via rent to own asking $1,850 mos with $10,000 down earnest deposit.
Selling price of $229,900
I marketed for 1 month before the bank took it and winterized the house. Only 6 bandit signs were used and I received an average of 8-10 calls a day on this one house. Damn, those sign work well. No one bit the hook due to the high monthly payment or down payments and to most, Both. Well guess what? I have plenty of buyers for lower priced houses when I do a rent-to-own.
Anyway, I've been talking to the bank with the house to see if I can make an offer to them. I offered them $115,000 two weeks ago when they called, but said that offer was too low. They finally called back today and said if I want it, they'll take $160,000 and no less. I thought about it and asked them to pay closing cost at that offer. They want me to put it in writing and they'll most likely take it. That's $27,000 less than what is owed to them.
I know I can still sell it on a rent-to-own or seller financing for $229,900. That's a $69,900 profit.
My question is, is this a good deal?
How can I purchase this house from the foreclosing bank without putting my personal guarantee on this house?
Should I pursue this?
Is there a creative way to buy this house?
Let me know, Thanks