I am hoping someone can give me some advice and I hope I am wording it right.
There is a house that maybe in foreclosure (or pre-foreclosure statue). The mortgage holder leased the house on a lease to own basis. The tenants in the house stop making payment toward the mortgage. The mortgage holders live in a different state and no longer wants to deal with the situation and wants out. The property manager is not keeping them up to date on the situation so basically they really have no idea how bad the situation is. As a newbie investor is there anything I can do to possible help the mortgage holders?
@Gwendolyn Davis , what would you like to do to help the mortgage holder? Do you have the means to make an offer on this property? Does this interest you? What are the numbers? Would the deal still work with a new "rent to own" tenant?
Perhaps you could make offer on the property, reduced by the amount of any arrears on the mortgage, subject to the first, repay the arrears and sales-lease option the property to new tenants. Let me know if have any questions about this process. Is it true this property is close enough for you to keep an eye on?
If you do acquire this property, find a new property manager. Keep on top of things and avoid getting into the same troubles. Don't get yourself into someone else's bad deal.
Happy New Year!
Thank you so much Tom. I am going to try and get numbers on the property and let you know. I live 8 minutes from the house so If I decided to do something I could manage it myself as I use to be a property manger. I will keep you posted and hopefully it will be my first investment.
@Tom, Here is an update. The bank has given permission in writing to short sale. However, I don't know exactly what that entitles. The property owner has agreed to doing so. Or Maybe doing what you suggested. They are motivated to get rid of the property. This would be my first investment deal and I am looking to learn from the experience and continue from this.
I am overwhelmed with information I have become lost in it. I read the beginner guide, multifamily investments, numerous blogs, and the new book no or little money down.
Any sale of real estate that generates proceeds that are less than the amount owed on the property. A real estate short sale occurs when the lender and borrower decide that selling the property and absorbing a moderate loss is preferable to having the borrower default on the loan. It is therefore an alternative to foreclosure.
Investopedia.com has a great real estate term dictionary
Hope this helps
Thank you Jamane
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