Do I have time?

6 Replies

I've found a potential deal that I may be able to buy before it goes to the courthouse steps for sale. It is scheduled to go on August 8. Is there even enough time to get a deal done with the current resident, before this happens? With a cash offer maybe?

Here's some info: Original mortgage was approx $145,000 in 2006. 2400Sqft split level built in mid 60's . Can you guys help we come to an approximate amount of potential equity in the house assuming interest rates and types of mortgage available at the time of 2006 and assuming the mortgage was paid current until 2013? Trying to see what the bank might try to get for the property if it goes to Auction and an idea of what I might have to offer the current resident.

Doing a quick look over the property, and barring anything major unforseen, I'm assuming I can potentially sell for about 160k with approx 30-40k of rehab. Does this even sound reasonable?

If you know an approximate rate on the property and the term of the loan you can use a mortgage calculator with an amortization table to see where the approximate mortgage balance would be.  Best bet to find the approximate rate would be to look at the St. Louis Fed historical 30-year conventional rates for the week/month the mortgage was originated as closely as you can (Information available at the county records office).

Some online calculator can be found here:

http://www.bankrate.com/calculators/mortgages/amor...

http://www.hsh.com/calc-amort.html

http://www.amortization-calc.com/

http://www.zumption.com/Calculator/

Again these will just give you an estimate, but it should help give you an idea of the unpaid principal balance.

Just out of curiosity have you not started negotiating with the seller? If this property goes to auction August 8 and you are still on the sidelines I am going to say you don't have a chance. If you are already in negotiation with the sellers but don't know the remainder on there mortgage to include how much they are behind. You are going to need to ask if there are any liens on the property. Unless I am misinterpreting your post it sounds as if you are unable to ask these question from the seller because you are not in direct communication with them. If I am wrong let me know if I am right now its probably not going to happen unless you already have a buyer in your pocket to wholesale this deal to. 

Originally posted by @Kenneth Ziembo:

Just out of curiosity have you not started negotiating with the seller? If this property goes to auction August 8 and you are still on the sidelines I am going to say you don't have a chance. If you are already in negotiation with the sellers but don't know the remainder on there mortgage to include how much they are behind. You are going to need to ask if there are any liens on the property. Unless I am misinterpreting your post it sounds as if you are unable to ask these question from the seller because you are not in direct communication with them. If I am wrong let me know if I am right now its probably not going to happen unless you already have a buyer in your pocket to wholesale this deal to. 

 I haven't just found the deal this morning. I figure it was too late, but wanted to know if I was in the position in the future if it would be possible. You are correct, I am not in contact with them currently. It wasn't intended to be a wholesale deal. It would be a property I planned to rehab myself. You are correct though, without knowing what is still on the current mortgage and how far behind they are, its prob not a good idea to go to continue much further. There is no one in the house, but there is a sign posted that it is under management by a property company. Is that normal for a home going into foreclosure?

EDIT: the sign mentions to call the property company if interested in buying. Just thought that was strange with a house that was going to foreclosure.

If the original mortgage was 145K in 2006 at 6% interest for 30 Years, the payment would be $869.35 P&I.  In 8 years, with ontime payments, the motgage balance would be $127,269.70.

If you're doing $30K in repairs, and ARV is $160,000, this is not a good deal for you.

Thanks everyone.

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