I looked at house with a ARV of 164-174k
The seller owes 100k on the mortgage BUT the house needs a lot of work. 40-45k in work. Its in a nice area but the seller just let his house go down the drain. He needs to sell because he had to relocate out of state a year ago and has been paying 2 payments.
Do you think I could create a win win situation?
Short sale will be needed to make sense. I'd offer like $80,000 for it. but it might take you 4-6 months to close...just my opinion....
Is the seller behind on payments? If so a short sale may be the way to go - but its a slow process. If not the deal looks a little tight with the repairs and using the worse case $164K ARV.
Don't forget about closing costs.
No he is not behind on payments...and for some reason he said short sale isn't even an option (not sure why) but we've talked about it several times.
I've even walked away from the deal and he calls after a few weeks asking about my offer and coming to the table with a little bit more.
My original offer was 75k after I saw the work and got quotes on the rehab work.
I was told you have to be upside down with your home to qualify for a short sale? Is that not true.
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