OfflineWhen determining if a home is a good deal, what do you have to consider in terms of liens and existing mortgages? I backed off of a property that I could have locked up @ 50% FMV, but the owner was still upside down on his mortgage. Does the mortgage stay on the home and just transfer to you? Thank you for your assistance.
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Would love to know if I am going about this right? Maybe an example would be better. Say there was a house that was ARV $100,000, and I got an offer accepted at $52,000, with $5,000 repairs, being set to make $13,000 at closing on the assignment (70%ARV - repairs). If the home still has a mortgage of $98,000. Does the mortgage stay on the property? So it is basically having 52,000 put against it. Or does the mortgage follow the previous owner?
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Unless you negotiate with the bank and THEY agree to your $52K offer, then I don't understand how you have a deal. The current owner is still making payments and does not have a deed to give you, right?
You could do a lease option, or buy subject-to, but you would still owe the bank $98K. Someone correct me if I'm wrong.
Anywaay, I wish you the best of luck with your investing.
Those who kill time murder opportunity.
"Beloved, I wish above all things that thou mayest prosper and be in health, even as thy soul prospers." III John 2
"To get up each morning with the Resolve To Be Happy is to set our own conditions to the events of the day. To do this is to condition circumstances instead of being conditioned by them." Ralph Waldo Emerson
That is really all I wanted to know. I got an offer accepted, then before I signed a contract, I went over my numbers and asked how much he owed, and it near the numbers as I stated, so I backed out of the deal.
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on getting out there and making offers. Those first steps are the hardest. If you are interested in doing short sales, I suggest you do a search and read all the posts on that subject. There is a lot of free info on this site if you have the time to read it. Or search for any investing strategies that interest you.
And, post your questions here. There are many experienced investors willing to answer questions and offer advice. You may be able to find a mentor or someone to partner-up with.
Those who kill time murder opportunity.
"Beloved, I wish above all things that thou mayest prosper and be in health, even as thy soul prospers." III John 2
"To get up each morning with the Resolve To Be Happy is to set our own conditions to the events of the day. To do this is to condition circumstances instead of being conditioned by them." Ralph Waldo Emerson
I didn't know that was what a short sale was. Maybe I will also look into that.
Just starting out. Please follow my blog at http://www.deangraziosi.com/real-estate-forums/investing-journals/62996/...