Specialist · Toms River, NJ · Member since 2011 · 76 posts · 15 votes
Is there any stategy you can use to help a homeowner get out of their house because they need to be cleared of the mortgage in order to finance another house. I received a call from a homeowner who has a home with $145,000 owed on the mortgage and the house is worth approx. $155,000(comps). The home is completely redone and tenant ready but I'm not sure what I can do because they want to be rid of the house. Seller financing, lease options, subject to....all those are out. Is there anything I can do or do they just have to list it as their only option?
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
14y
Worth $155K, they owe $145K, realistically they're five grand upside down after closing costs. They want to "jump and dump". Find a way to buy a new, cheaper house and be rid of the old one. For the right (i.e., desperate) retail buyer (i.e, homeowner) it might be an acceptable deal. For an investor there's not enough room to many any profit.
Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes
14y
Originally posted by Stephen Dillard:
Is there any stategy you can use to help a homeowner get out of their house because they need to be cleared of the mortgage in order to finance another house. I received a call from a homeowner who has a home with $145,000 owed on the mortgage and the house is worth approx. $155,000(comps). The home is completely redone and tenant ready but I'm not sure what I can do because they want to be rid of the house. Seller financing, lease options, subject to....all those are out. Is there anything I can do or do they just have to list it as their only option?
If you want to help them, looks like you will have to take a listing for 1% and offer 3% to the selling agent. Owner might walk away with $0 in their pocket if they got a full price offer. Otherwise, they will need 12 months of cancelled checks before they could finance another house. I know these might not be the answer you're looking for, but that's all I got. :)
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
14y
Not really enough info about the owner, do they have any money to buy another property? What is their income, can they support two mortgages or a larger one? They could refi and purchase another with a blanket loan and some lenders will off set some of the payment with a lease and a property manager if they have no experience.
Specialist · Toms River, NJ · Member since 2011 · 76 posts · 15 votes
14y
This was just a lead that came in looking for a solution. I figured listing the house was all I could do, I just wanted some more opinions on it. Thanks for the responses.