Hi All, I may have an opportunity to purchase my first investment property. A friend of my fathers home is going to be auctioned on the courthouse steps 5/5. She is pretty desperate for someone to buy it before that , and she would like to stay in the house as a renter. The home is in need of repair as well - Tax value is at 114K. She owes about that in principal but needs about 25K in repair. So, as an possible investor what would be the best route - should we just go to the bank and make an offer for a short sale? Are there any other strategies that may work ?
The home is in Forsyth County, Ga
That strategy won't work. Maybe you could buy it on the courthouse steps but, you won't be able to buy it in a short sale. It's not arms length, it is too late to engage in a short sale, it's not listed with an agent on the MLS. Probably other issues too.
This one is leveraged to the hilt AND needs rehab ... not good. Also getting a short sale approved takes MONTHS - even YEARS. Best thing to do is attend the auction. You learn 2 things:
1. What other investors are willing to pay
2. What the bank rejects - assuming they reject.
With this knowledge, you can approach the bank with a better offer (assuimg it's worth more to you).
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