Is this deal worth pursuing?
Property value after repairs $350,000-$360,000
Estimated repairs ($20,000-$30,000)
Balance of 1st mtg (Everbank) ($271,985)
Balance of 2nd mtg (HUD) ($ 24,482)
Cost to cure loans-est ($13,000)
Est equity $10,533-$30,533
Puchase: 100% cash
For: primary residence
Plan: Offer owner $x ($5k??) (Depending on actual balances)
I am a total newbie. I was inspired by reading a long thread from @Sam Alpha where he was trying to buy from owner prior to foreclosure.
This is a nice home in a great school district near where I live. Have been looking for a home such as this to allow us to substantially reduce our housing costs. Houses sell quickly in this area.
I noticed this house is in preforeclosure and scheduled for auction. This person has had some problems and got a loan mod on 3/26/14 to $263,601 (but foreclosure notice shows full original loan balance of 271,985).
Some questions:
1) Is this worth pursuing? No idea if it really needs $20-30k repairs. Assuming if being foreclosed, some deferred maintenance. Used one year of interest for est. cost to cure loans.
2) How do I contact the trustee to find status? Have name of trustee. Have name of law firm. Very difficult to find trustee contact info.
3) From reading other postings, it sounds like newbies have a hard time buying at auction. Anybody on BP that is familiar with the Montgomery County TX auction (Spring/The Woodlands)?
4) Should I pursue a short sale? It is not an obvious negative equity situation…
Regards,
Carolyn