OfflineHello DG community. I have recently found what I consider a rare deal. I have received information regarding a property I have a chance to buy. I don't want to go into details on how I know this information, but I have recently talked with a lady who currently owns a home worth $170,000 in good condition. She is seriously delinquent on her mortgage missed 3 payments in 2015 and hasn't made one payment in 2016. She currently owes $42,000 on her mortgage and has awful credit I have seen her full profile. She has not been served a foreclosure notice yet. She explained to me she thinks the home is only worth $120,000 and Zillow and trulia and Redfin est. are $167-170,000.
No one else is aware of this current situation and she told me she tried to refi but cannot. I saw on her credit profile that chapter 7 was listed on her mortgage. Since she is so delinquent she will go bankrupt and lose the house right ?
My plan is to talk with her explain the consequences of going bankrupt or foreclosing , then making her a reasonable offer that could pay off her mortgage and get her some cash to relocated find a rental and not completely take a total loss on equity and have bankruptcy or a foreclosure on her credit .
I am thinking of offering 52-62,000 cash and doing a double close. I have an investor lined up who I would pay at least 120,000-135.000 for this property.
Can you guys please give me your opinions and advice on how I should execute this deal and what you would do personally !? thanks !!
How much does she owe on the house including back payments, penalties, and interest? Any liens on the property? Taxes current? What state is the property located in? Is it a trust deed or mortgage?
$42,000.00 owed on mortgage on her credit report
$27,000.00 past due
10 missed payments totaling $7,000 est. and I'm assuming penalties and interest & payment equal $27,000.00.
Taxes current and will be due in December.
Located in KY.
Do you have any cash to work with? Is it a mortgage or deed of trust. Is there a stay order in effect due to the bankruptcy on going? Has the bankruptcy been completed?
Yes can make a full cash offer up to 100,000.00
mortgage.
She went chapter 7 last year on a few debts mainly credit cards.
She went bankrupt before the delinquency on her mortgage.
She has not been served a foreclosure notice yet.
When was the loan originated? It might be one of those robo-signing deals that got lost in the shuffle. Is it a mortgage requiring a judicial foreclosure or a Trust Deed with the power of sale?
"$42,000.00 owed on mortgage on her credit report
$27,000.00 past due
10 missed payments totaling $7,000 est. and I'm assuming penalties and interest & payment equal $27,000.00."
Her payments are $700/mo? So she hasn't received a foreclosure notice from the bank? if she hasn't received a foreclosure notice from the bank, are they telling her she is $27k behind?
The loan was originated in 2000. She went bankrupt in 2007. And now she is almost 10 months behind in payments. I am very new, so please excuse my lack of knowledge. My question is..how has she not been served a home in default notice yet? she has not made a payment since oct 2015.
Yes her payment is appx. $700 a month and her credit report shows she owes $42000 and is $27000 past due.
I wouldn't get lost in all the details the important thing is sounds like a great deal, I would offer immediately! before she goes in to foreclosure and a double close sounds awesome, i would just make sure you have a title/escrow or attonrney that does those and put them in your contract when you submit to your seller.
Have you done a double close before? when she signs you then get a purchase contract from your buyer and another thing I would get or search for an esccrow co or attorney that does dry double closes, in other words that lets you use your end buyers funds to fund your purchase of the property so you dont have to pay any fees or points by using a transactional co, saving you more $.
go get em n let us know how it went, way to go brother go slay it!
Tony
Go faster do more! GFDM!