Thanks in advance for any help you have to offer!
MH Property on 6 acres. Room for another MH. Seller is in foreclosure, no date set yet.
She's willing to sell for her loan payoff if the buyer will lease the MH back to her for about what she's paying now or a little more for at least a year.
I want to wholesale this property with an assignment if that's possible. Is it?
Payoff: $25K or so including arrearage.
She's paying every month, but is about 3 or 4 years behind due to circumstances several years ago.
FMV of property $40K or so.
Room to add another MH and rent both out. One to seller. Total rent would then be about $1400-1600/month.
I have a buyer interested at $35-40K. So if I write contract with the seller for loan payoff, with buyer paid closing costs, can I then assign the contract for $35-40K, and everybody goes home happy?
What would the best order be to do things? In my mind it would go like this:
1) Have seller call bank and get actual right now payoff number
2) Write purchase contract with seller to cover that payoff and closing costs. Special provision to include buyer agrees to lease property back to seller for at least one year, details on separate lease attachment.
3) Take contract, lease attachment, & earnest money to title company and let bank know contract to sell is in escrow. (I'm assuming this would stop the foreclosure process?)
4) Write the assignment contract & take to title company
5) Close and everyone is happy.
What am I missing? She's really close to having a date set. Like it should have been set 2 months ago...
Thanks for any advice!
Has she been sent the Notice of Acceleration yet ? Forclosure in Texas only occurs one day per month and it is the first Tuesday after the first Monday of every month. So if it is not posted by this coming Tuesday then you have until at least June. Worst case is you have until May 5th and if you have a contract with a closing date you should be able to easily to it done by then
Thanks @Greg H.
She told me she'd know Wednesday, which makes sense to what you're saying. Thanks! That's a huge help! (If my potential assignee has the cash).
Having a contract won't stop the sale, only forwarding the money to the bank.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.