Wholesaler · Southern, CA · Member since 2013 · 139 posts · 10 votes
SO i received a call from a seller from my letters that needs her property out of her hands by Aug 10th. is that too little time to make a wholesale deal work? Her asking price is a little too high in my opinion for this to work in 6 days. what are some motivations for her to hand it off to me at a deeper discount? or would this even work at all..
ARV 360k
Repairs 2-5k house looks pretty decent already possibly why they were trying to sell it through an agent too high for so long.
She is ask $337k
what shall my maximum offer be? or is this even worth it?
Seems what we have here is another local expert assuming all states are the same.
Derrick, IA is a "lien state" you will have a NLP.
CA and MO along with 23 other states are "title states" non-judicial, where title is vested with the lender and the owner retains the "bundle of sticks" of owners rights.
2 copies of a Notice of Default are not a requirement everywhere, one is always required to be delivered to a borrower.
In fact, in title states, there is no court filing, non-judicial foreclosure begins by the notice of foreclosure, publication, filing of the notice to foreclose. No LP to clear, the lender is already in title.
What you experience in IA is unique to IA or perhaps other lien states, it is not in title states, so your assumptions are incorrect. Hang in there, you'll find too that CA is another world located on the West coast of this country.
K. Marie, Wayne and Rick are correct. Brian has a very good point as well.
I had a relative who was Dutch from IA, she just had to be right about everything, she even told me that a school I attended was never the name of that school when I went there! Loved her, but I sure try not to be like her. Good Luck :)
So basically it is a reverse mortgage.. owes 290k plus 38k in repairs her agent suggested to do to try to sell it retail.. comps are around 350k ... there isnt any room.. she is basically upside down.. not sure why the 10th.. i would assume she was in escrow recently but she was telling me that they were not taking her administration fees or something so it ended up taking so long it reached this point..but .. i am very unfamiliar with this situat. I am new to this niche but i love the niche so this to me is a learning process.
And now back to our regularly scheduled programming. Pre Foreclosure and Probate Deal with Time Constraints. @Account Closed So what's going with the Admin trying to sell by the 10th? Is the trustee's sale scheduled for the 10th? Is there a pending tax sale? Why the 10th?
We are missing numbers. What is owed on the loan? Buying this property with cash or seller financing could be a moot point if the loan is over encumbering and/or is a reverse mortgage. Or if there are other debts. More details on the loan and debt issues and we can better brainstorm on it.
So basically it is a reverse mortgage.. owes 290k plus 38k in repairs her agent suggested to do to try to sell it retail.. comps are around 350k ... there isnt any room.. she is basically upside down.. not sure why the 10th.. i would assume she was in escrow recently but she was telling me that they were not taking her administration fees or something so it ended up taking so long it reached this point..but .. i am very unfamiliar with this situat. I am new to this niche but i love the niche so this to me is a learning process.
I had guessed an RM and the exec is trying to short sell. I get confused when heirs open a probate to transfer upside down property. You would only do that if there were other assets to transfer and make it worth the court and legal fees. Or if you wanted to transfer the property to a bene that can make the payoff. The real question is the value. The RM lender has to take 95% of FMV.
The 10th is probably the deadline for payoff before the lender initiates foreclosure by filing an NOD.
Walk away, if you don't have all the facts or team to help you, or the experience.
You need to move quickly for some reason. Don't get snookered. Think before you move. It sounds like you need to find out way more as you have two flags. Probate and unknown existing mortgage. Knowing the facts will let you understand if this is a deal to undertake or not. Probably, not for the light-hearted or full time working outside of REI.
It sounds like it's going to auction on the 10th. You may have missed out if so. Maybe she wanted the money to stop the auction. Then, deal with trying to off load.
Today is the 10th, so let us know how things went.