How would you handle this deal?

13 Replies

This lead came in on my website today. How would you handle it?

Bedrooms:3 beds
Bathrooms:2 baths
Single Family:1,486 sq ft
Lot:8,750 sqft
Year Built:1990
Last Sold:Jun 2005 for $119,000

  • Description: SFR Vacant
  • Condition: Good
  • Why do you want to sell?: Get weight off my back. I cant worry about the house now
  • How much do you owe? $125,000
  • Who is the lender? B of A - Select portfolio1st is about 90k second about 30k
  • Are you behind in payments: yes - 2 years or more
  • What is the least amount you would accept? $1
  • What are your goals for this property? I just want to get out from under it

How much is it worth?

Assuming there's not much equity, your best bet is likely to find a good short sale agent, get it listed as a short sale, and then make an offer that makes sense to you.

what was there mortgage amount?

how long have they had it for?

are the taxes back up as well?

2 years backed up is alot short sale may be the best option. or sub to if you have the funds to catch up on default. But the member seems as if they want cash?

Last sold 1990 for $119,000 and he is behind 2 years? He is asking for retail price. This might be a cold lead.

Well, the home is underwater. Sounds like a short sale to me. My first question would be where is B of A in the foreclosure process? Have they pursued foreclosure? Is an auction scheduled? The answers to these questions may help show the direction to take.

Here are more details.

Sale Date: MAY 15 2014

1st mtg balance: 95,000

2nd mtg balance 30,000

includes fees

taxes: assume 2 yrs behind

The seller just wants to sign it over to someone subject to that can possibly buy out the 2nd and just pay B of A.

@J Scott:
How much is it worth?

Zestimate $98,906

Ted - If you're either trying to buy equity or cash flow at a discount, absent a strategic reason like land assemblage, why would you spend much time in this?

Option the upside?

Sandwich lease?

Buy, strip copper and resell (the commodity)?

short sale it, and a get a kick back.

What if...

I took title to the property for $1 subject to the first and second, then get on the phone with the bank. Offer the bank a deed in lieu in exchange for a 5 year lease with purchase option?

Does anyone like that idea?

Originally posted by @Tim Hall :
short sale it, and a get a kick back.

That sounds dangerous.

Originally posted by @Rick H. :
Ted - If you're either trying to buy equity or cash flow at a discount, absent a strategic reason like land assemblage, why would you spend much time in this?

At the moment I have more time than money so I'll trade some of the former for the latter.

A deed in lieu subject to a lease may violate their arms-length transaction requirements. Every short sale regardless of lender requires the "arms-length transaction" certification that has wording like below:

"The Buyers and Sellers nor their Agents have any agreements written or implied that will allow the Seller to remain in the property as renters or regain ownership of said property at any time after the execution of this short sale transaction. None of the parties shall receive any proceeds from this transaction except the sales commission."

From a buyers side, I do not see any profitability here. But there could be some money to be made on the management side. What is the market rent on this property compared to the mortgage payments? You could fill the role as property manager. Find a tenant. Keep 10% of rent while they pursue a short sale.

Even if you buy it subject to, how long will you have to wait to see the market recover? Too risky in my opinion.

Ted, Banks do not do creative deals, they discount for cash, thats it.

Look for sellers that are current and want to sell, or behind a bit and will sacrifice their equity like 25% equity.

That is a lead.

Get a real appraisal, it's a short sale.

Since when did BoA start being in the real estate rental business?

The next owner needs to put up a fence to keep the neighbor from using the driveway as his circle drive too. :)

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here