Follow up Deal?

Would really appreciate any input anyone may have.

That was the only thing that I was coming up with as well.

How would I go about doing this for a new buyer who want me to finance our home?

Here are to break down:

1. The FMV is $285,900 we owe $60,000 on the loan.

2. The ARV is $350,00 repairs needed $15,000.

3. The area comps: $329,000 to $350,000.

4. Here is the break down from Zillow: http://www.zillow.com/homes/13412-biddeford-ct-germantown-md-_rb/#/homed...

Thanks for any help you can pass my way.

Tony

Looks like a nice home after viewing the pics.

How did you come across your buyer?
Have you qualified the buyer to make sure they can afford the home?
What price did you advertise the home for?
What price did your buyer offer you?

I have a deal similar to this in the works, however, it isn't as underwater as yours. I would find out the monthly payments and then go out and build your owner finance list. Find someone who can afford to pay more a month and collect the difference. You and the seller will do a subject to. You and the buyer will do a land contract (contract for deed). Get a good down payment (5% of purchase approximately) to know they are serious. Owner finance buyers don't care as much about the final purchase price. Their main concern is their monthly payments. Now go out and help someone sell a home (without a hit on their credit), and help someone buy a home (without a bank, you're the bank). Good luck. Stay creative, stay flexible.

Thanks for your input.

I am not familiar with land contract (contract for deed). How does it resolve the issue that the seller has the massive debt against a home that does not have the value to support it?

For example, what if my buyer is able to secure financing and purchase in 2 yrs? How could we execute a closing with the large difference between mortgages owed and home value which would be much less?

for this technique would need you to hold the entire financing. In a scenario like this the end buyer would not be able to get the home on a two year purchase. Find out the number of years left on the seller's mortgage and structure similar terms with your buyer, never shorter. You play the bank and the buyer pays you interest and principle monthly. Dean has an amortization schedule on this site. Use this after you find out the seller's payments and number of years left on the loan. A deal like this will not be able to go through traditional financing, so you collect the buyer's monthly payment and use that to pay the seller's note. Dean has sample land contract forms on this site. Read through them to get an idea of what it is all about. It is a good technique for people who are under water.

Like Michaael said Short Sale or Walk Away unless you want countless nights with no sleep...Jan

Subject to/land contract has a lot of moving parts and is a long term process. Short sale is an easier option with a lot less commitment and work on your part. Just offering another option but the deficit may be two great between FMV and payoff.