I was trying to figure out if this deal was good for me my wife's mom's home is in pre-foreclosure and I was wondering, Could I make a good profit on a property that is worth 230,000 and they have 180,000 left to pay on it .It was originally 280,000. Im trying to whole sale it??
What it was worth originally is irrelevant. What are similar sqft homes selling for in the area?
And when I say similar, I mean "as is" condition or rehabbed. Pool or no pool?
I'm not a short sale expert, but you may actually be able to get it for under the $180k if you go that route. Basically you make an offer to the bank to buy the property for less than what they owe but more than what the bank would make selling it in foreclosure. Hopefully you'll get some short sale experts here. In reality someone should be able to buy it for $180k and just pay off the mortgage.
235,000 is the most for a home without a pool and same amount of bedrooms and bath
@Lucas P. undefined
@Dustin Smith undefined
Thanks and so I should get it for less than 180,000 and sell it for 180,000?
@Elijah Crowder I would sell it for whatever its worth. You could possibly get it for less, maybe $170k, but that all depends on the banks situation. They will only do that if they won't get $170 for it after the foreclosure process.
ok thanks! how do I write the contract or would the bank write one??
I'm not a short sale expert either, but I'm pretty sure the bank would want to get current market value, especially if that value is the amount of the loan or higher.
Also, you may run into trouble convincing the back to deal if the buyer is related to the homeowner.
@Lucas P. Valid points. There would have to be a reason the bank couldn't get a better price. Maybe the foreclosure process is extremely expensive, I'm not a banker and I'm not sure what it costs. You'd likely have to do the contract.
1. How much is owed in back payments?
2. What are estimated repair costs?
3. How sure are you of your numbers?
4. Monthly payments (PITI)?
4. Instead of ensuring your mother in law suffers a serious credit hit for years to come, why not consider contracting subject-to so she can get her payments back on track and still make a good deal for an end investor.
Message me with details as I would be interested in the property if the numbers work.
I will be in contact with information later, Thanks.
Elijah, you should contact Oyezz Real Estate in Dallas. They are short sale experts and can walk you through it and negotiate with the bank for you. Haven't worked with them yet personally but I've heard good things.
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