Creative Financing Experts - Is There A Deal Here?

Question

Hi all,

A lead from my foreclosure list called me with some inquiries, and explained that he is looking for someone to buy his house cash and then lease option to him. He was unable to give me his mortgage balance, but says he is $200k behind in payments.

Is there a potential to buy using a hard money lender, and then lease option the home back to him? The house has a market value of just over 1 million so I doubt I would be approved to refinance to a conventional mortgage.

Any other strategies that could allow this to be a deal?

Thanks!

Nick

Gordon Cuffe · Answer

The first thing you need to do is find out how much the lender needs to pay off the loan and the terms of the loan . If his balance is 800k and he is behind by 200k then the lender wants 1 mil to pay them off. That is not a deal . A hard money lender wants a big down payment to buy the home . If you do not have the down payment then find a investor who can buy it and wants a tenant . Make a commission on that transaction . Nothing can be done before you know the loan balance , term and payoff.

Brett Chaponot · Answer

Not knowing his mortgage balance may be the reason he's $200k behind in payments... I think knowing the equity portion of this equation is pretty important as well as who his bank is. I'm curious to who let him get $200k behind in payments...

Nick Zocher · Answer

@Gordon Cuffe Thanks Gordon. Really helps to be an agent and have the option of making a commission while not actively being involved in the investment.