There is a vacant house I have been eyeing. I finally got to meet the owner the other day and found out she would love to just get rid of the house. The problem is when I run the numbers at 60% ARV, I come up with a conservative $85,000. She said they still owe $135,000 in loans plus unpaid mortgage payments. Is there anyway I can help her out? Or do I just have to walk away. I would really like to structure a deal, but I am completely new and don't know if a case like this is worth pursuing. Can I contact the bank directly and try to work out a short sale to prevent foreclosure? Thank you for any help.
The homeowner will have to contact the bank to give you permission to talk to them.
Justin Silverio CPA, Open Letter Marketing LLC | firstname.lastname@example.org | (978) 269‑0245 | http://www.OpenLetterMarketing.com
There sounds like a good possibility for a short sale. There are many things to consider, but for someone not experienced with short sale negotiation, to try to do this yourself would be a disservice to the property owner. If you like the house and are willing to wait for the short sale approval, I would suggest working through a Realtor that is experienced with short sale negotiation or through a third party company that can structure, manage and negotiate the approval from the lender. Short sales are a great source of inventory for investors!
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