Is this deal worth it?

I do have a buyer but I think they might owe more then 325k

So the owner is behind on one payment and owes over what FMV is? How much $ is your buyer willing to spend? I can't imagine this is going to be a good deal either way unless you can get them down $100k or more with a short sale, and that could take months to complete. Let us know how it goes.

It appears from the information you have given that there are alot of things working aganist you on this house. With the glut of 4c's already on the market, I believe you could spend your time better on deals 65% or MORE below FMV. Too much banjo work required on this one. Good luck buddy.

there are creative ways to make this work but you first need to know the actual mortgage balance [and rate and if it is fixed or adj] and their true arrearage of payments and taxes. Do your homework while at the house and look for delayed maintenance issues as they can kill you too. Send me a PM if you wish once you have those numbers and I can send you the next step I would take.

Hi Guys, thanks so much for the advice. Do the deals you guys do always start below fmv? I was just so excited to find a motivated seller I jumped the gun on this one. I realize I could do a lease to own deal with this but since the balence is even I idk if its worth it.

I would try a short sale or possibly a lease option. depending on the length of the lease, if you stretched it out to 5 years you could ask for a credit from the seller for lets say 500/month accumulating and applying at closing time. Then get a 5% option payment from your buyer with a 5yr. lease... considering the lease covers the sellers mortgage.

Breaks down like this...

Purchase price of 375k
500/month credit =30k after 5 yrs
5% option payment=18,750

you make 48,750 and possibly more if you can lease it for more and create some monthly cashflow.

enthusiasm. If this is your first deal, I was only stating it could take more effort to put all of the pieces together, and that a property below FMV could be easier to close and to sell quicker. But, I would suggest that you take Bill up on his offer to talk to you about the deal. He is an excellent source of advise...of course if youve been doing it as long as he has (since slick paper faxes and dial-ups LOL) he knows his stuff.

from Bill Pohl - I hope you are taking him up on it.

find out what the mortgage payment is; you could do a sandwich lease option if you can rent it for a price higher than the mortgage payment. You get a deposit from your lessee, use some of that money to bring the mortgage current, plus you keep the difference between the 'rent' and the mortgage every month.

Or... you could find a broker who specializes in short sales; ask how much they would 'pay' you if you bring in leads...

Wishing you success,

Valerie