Good day all!
I found a property where the couple that held the mortgage are deceased. They had about 5 kids and one of the sons currently occupies the property and is extremely willing to work on my behalf with the loan holders but I don't know how to move forward with the deal (if it is indeed a deal). He says that his siblings want nothing to do with the house and will not give him any hassle if he pursues executor rights. The house is headed for foreclosure (and auction) and my thinking is that I can get ahead of this and bring the mortgages current contingent on a purchase contract signed by him if he gains executorship. One of the problems is that the banks won't even talk with him about anything unless he's the executor. We are scheduled to meet with an attorney and I'd be willing to pay the $1500 filing fee for him to gain executorship but I don't know if he is accurate on the amounts owed or what other issues and costs that I'm not accounting for.
Another thought I have is that if we can get in touch with the banks maybe they'll be willing to waive all the fees if I will make them whole on their original loan amounts. I'd be extremely grateful for any ideas or thoughts that you guys may have.
A little about the property:
There are first and second mortgages on the property for 100k and 26k respectively according the son. The ARV is 165 - 175k in a neighborhood where no properties in this price range stay on the market very long. This is the definition of a paint and carpet rehab and I anticipate about 15k in repairs to get the property ready to sale or about 5k if getting it ready to rent.
No, the lenders are Not going to waive the accrued fees, interest, costs, etc. If your numbers are close, there is no deal here for a flip.
Thanks. Yeah, i was thinking that the banks probably wouldn't waive any fees, etc.... Based on the area though, if the numbers he gave are good, i think a deal is still to be had. It's been pretty hot here. If the place goes to auction, I'm sure it'd sell in the 150k range as is...
What about speaking with lenders to get the exact figures? Are there any ways to get that info short of the executorship?
There isn't enough meat left to make it worth it with those numbers. After purchasing costs, rehab and selling costs what are you left with $10-20k maybe if nothing big is found during rehab? How would a house valued at $165-175 sell for $150 at auction? Are people paying retail at auctions by you? Have you seen any comps to support that?