OfflineMy lawyer came to me about a deal I might be interested in. A client of his has a property that they want in my area that is a foreclosed property. It's selling for 69k with a market value of 168k. The client's credit is bad due to medical illness and does not have a job because of the illness and has 5 more months of unemployment. She's leaving her previous home because a development company bought multiple homes and her home is one of them. They agreed to give them 30k towards the foreclosed home if they found their own financing. That's when my lawyer approached me. The client can make a large down payment (possibly as much as 50%) and would prefer to pay higher initial fees/costs and interest because of their credit problem and job situation.
My question is how can I help these folks get this home despite their credit problem and how can I approach a potential buyer about this.
Thanks to anybody that can help--jason
"I used to say, "Things cost too much." Then my teacher straightened me out on that by saying, "The problem isn't that things cost too much. The problem is that you can't afford it." That's when I finally understand that the problem wasn't "it" - the problem was "ME!"--Jim Rohn
Sorry, I don't follow.
"A client of his has a property that they want in my area that is a foreclosed property."
Does this mean the property is OWNED BY THE BANK ALREADY, or does the owner still own it? Preforeclosure?
Client has big down payment, but no income?
How is client going to make payments?
Client can take over the payments of the existing loan (but with no income?)
Client may be able to get a hard money loan since they're putting down 50%.
I dunno. What's the status of the house? What's the underlying loan? After 5 more months of unemployment, what will be clients income to make payments?
Please add more info.
Thanks
the property is owned by the bank and they are getting a large amount from the development company but the details of the payment plan they have structured haven't been given to us yet. there is an income coming in from her husbands retirement and she is capable of working (computer masters degree) just hasn't been well enough to find a job just yet - that's all the info our lawyer has been able to give us so far...he said the proposal was written up this week but is pending client's approval before we can move forward with financing her
"I used to say, "Things cost too much." Then my teacher straightened me out on that by saying, "The problem isn't that things cost too much. The problem is that you can't afford it." That's when I finally understand that the problem wasn't "it" - the problem was "ME!"--Jim Rohn
An option is for the client to present a cash offer. You are saying that they are good for 50%, I guess that is out of $69K which is about $35K. But remember, the you have to decide what offer you will present. If you choose on behalf of the client to put in an offer of $40K and it is accepted, that will be perfect. The difference, they could maybe get from friends or family. Remember to factor in your minimum assistance fee. Just thinking of a way to help. God Bless.
Sandra
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Jason,
I do love the numbers of a 69k/168k,Your post i did not get the full picture but i really think real estate is an numbers game when it comes down to being granted a loan!The numbers you just posted on the deal in most markets would work...But then again,After running all of your comparison items before locking down the property/That would tell too lock it down or move on.
Jason i do like the numbers of your prospect deal,Then again i do not know what you are up against
Make your Luck
Randall
Invest in yourself!