Real Estate Investor · Las Vegas, NV · Member since 2009 · 19 posts · 1 vote
My girlfriend is currently living in a rental where the foreclosure process has recently began.
Having yet to make my first real estate deal, this seems like it might be a prime candidate to do so.
She has been in the house for a year and another roommate has been in the house for two years.
We would like to leverage the fact that they have been in the house as long as they have to acquire it and then wholesale it to another investor, keep it and owner finance, or acquire, owner finance and flip the paper to another investor.
Thoughts? Suggestions?
Thanks in advance guys! (and gals)
EDIT:
The main thing in question is the acquisition of the home. The most simple form of acquisition is preferred with the least restrictions.
Investor · Chattanooga, TN · Member since 2009 · 1k+ posts · 903 votes
16y
How much is the house worth? How much is owed on the mortgage and how far behind on payments is the owner? The lender isn't really going to care how long tenants have been living in the house and if the owner is being foreclosed on, they are in no position to owner finance your girlfriend. You could try to do a short sale or take over the existing financing subject 2 but you really need to know what the house is realistically worth and the loan balance, etc. If the loan is more than the house is worth and lender doesn't want to take a haircut, you don't have anything to work with.
Real Estate Investor · Las Vegas, NV · Member since 2009 · 19 posts · 1 vote
16y
Hey Brian, thanks for responding. How awesome is your last name? "Mr. Levredge."
As of December the house was either three or four payments behind and it's now March.
It's probably a better short sale candidate than subject-to based on the negative equity.
The lender really has no choice but to take a monster loss on this house as the two most recently sold houses in the neighborhood were sold at an amount that is 45% of the balance on this house's loan.
I'm not interested in the bank owner financing this house to my girlfriend, I'm interested in acquiring the house and then possibly owner financing it to someone else. Or one of the other exit strategies listed above.
New Albany, OH · Member since 2009 · 10 posts · 5 votes
16y
Sounds like your girlfriend might already have a report with the owner. If this is so, she can probably talk them into working with you through the short sale process. Just let them know you want to buy the house from them so they can avoid foreclosure. If they agree, I would proceed in negotiating a short sale as low as you can and whoelsaling the property. That is unless you have the cash to buy it and can get a good enough deal to hold it as a rental.