Hi all, skipping the newbie introductions and going straight to the question(s).
Spent the last 4 months really trying to focus on my investment strategy and buy and hold it is.
So i was just poking around the MLS, while i get my other lead sources up and running and found a property that fit my criteria (except the price). For some reason i had a gut feel and contacted the Seller Agent about the house and a viewing. Net/net:
- ARV - 200-5K
- Mortgage - $167K (i thought based on modification agreement i viewed online from 2012)
- Repairs - 15k
Viewed the house - total s-show. Offer = 165K. Realtor tells me (multiple times) she will terminate the contract (no commission) just so the seller can get out from this home, but says total outstanding balance 182K (guess there was a second and a few months late pay).
Long story short, seller can't find 17K to make up the difference. Are there any other angels here? I'm ok to walk away, just wanted to know if there were other views i should/could be thinking about..??
Ask the seller if they'll consider approaching their lender to complete a short sale. Asking doesn't cost you a thing.
If they're not willing you walk. If the lender won't, you walk. If they accept then you get the deal.
You're in the drivers seat here. If none of the terms are acceptable to you, you walk.
Originally posted by @David Tyrell :
Trying to get this clear:
Property ARV = 200,000
Mortgage Balance = $182,000
Repairs = $15,000
The numbers seem correct?
Equity = [ARV - (Mortgage Balance + Repairs)]
Account Closed - that's correct. My offer was 165k giving me s 20k equity gain.
You would have to get both the seller and bank on board to get a short sale of some sort. The bank would need justification why they should sell the property for less than what is the mortgage balance.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing