Approaching Distressed Properties
I went out driving a couple days ago through several different neighborhoods near my area looking for potential deals. I noticed about 4 homes that had grass 2+ feet high with overgrown shrubs, etc.
One property had the tall grass and a gutter busted into pieces and hanging to the ground in several areas. This house is in a nice neighborhood and is a nice house (minus the yard). There was no For Sale sign. At this point, I do not know if the owner still lives there.
I did a little research and found the owners name, purchase price, and purchase date. A Google search revealed that the property is not listed.
The purchase price was for $350,000 in the early part of 2006. A 2009 Tax Assessment has the property at $235,000. I believe it to be worth roughly $180,000 +/- 10%.
I doubt that there is much equity in the property. Since the price has dropped so much, how should it be approached? Short Sale? Worth pursuing?
If I decide to pursue and cannot find homeowner, would there be any benefit to find the lender? Even if I find the homeowner, is there a way to get a deal with these numbers (offer 180,000*1.1*0.7=$138,600)? Would any lender be willing to loose on the high end 350,000-138,600=$211,400?
I look forward to your input.
Most Popular Reply
Your first item is to find the homeowner. Most likely you can get the owner's name from the tax records. Getting their information is a little tougher. Once you speak with the homeowner and gather all information, you can determine which strategy to use.