OfflineI wanted to know a few different ways I could try to profit from a preforeclosure. My parents are just letting there house go because they found another place, and they agreed to let me use the house as my first deal. I thought about trying a short sale but it has about 20 grand in equity, so I wasn't sure it was possible being that it isn,t upside down in equity. Plus it needs about 7 grand worth of work. So the only thing I could think of at this point is to pay the past due. And the work that needs to be done is for the roof and the insurance company is willing to pay. Now I don't have the money to pay the backed up payments so I need to know of other possible ways I could strike a deal with no money. Please help with suggestions, getting this first one done will be such a great experience, and there is always a way. Help me out on my possible first deal. THANKS!
Preforeclosure Deal! Help Please!
Posted on: Sat, 10/16/2010 - 02:12
modification. They will roll the back payments into the end of the loan and lower your monthly mortgage payment. I hope your parents realize that if they bought another house and walked away from their current house that they could afford, the bank may go after them. What they did is called strategic default and the banks are going after people who do this big time. They could be slapped with a big tax bill because they no longer fall under the Mortgage Relief Act.
keep the loan in your folks' name and have them sign the deed over to you. Then find a tenant/buyer who can make up the back payments and is willing to rent to own the prop. You can put the rent 100+ over the mortgage payment. Set a price for them purchasing in a year or two. Check out Randy428 journal.
He has quite a pit of info on it. Will keep your parents credit from going down the toilet.
Cathy B
Follow my progress at:
http://www.deangraziosi.com/real-estate-forums/investing-journals/44397/...
This would be a good start for you. I would use a lease option on this start advertising this as a lease purchase, down payment should be what you need to make the loan current then rent it for a profit or just enough to break even, then when the market comes back you can move back in refi or sell to you tenant buyer.
Good Luck make this work!!
Jay C
They only way a short sale will work is if you have a lagit Hardship!
Jay C
It depends on 3 things.
1. How much will it take to bring the mortgage current?
2. What is their monthly mortgage payment?
3. Do you have a tenant/buyer that can pay the back payments and afford the monthly payments? Hopefully they can pay more that what is owed for back payments as their option payment and more than the mortgage payment so that you will make money.
One other note for all DGers.
I read on here all the time about the 3 ways you profit from lease/purchase. Front, Middle and Back.
Your profit on the back side is determined by the appraised value of the house when the tenant exercises his option. Example: I bought it for $35,000 and I sold it for $75,000, a $40,000 profit. Guess what, only if it appraises for that because no bank will finance the deal unless it actually appraises for $75,000! So the price you sell the house for in your lease/purchase contract should be accurate or based on current market value at time of sale.
Michael Mangham
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
Thank you for all the good advice. I will do my best!