Real Estate Investing!

Just my luck.... - http://www.dealmakerscafe.com Forums

Original message

manneke

12.5.51.130

"Just my luck...." , Wed 2 Aug 10:05

I called my motivated seller this morning (see post below) to confirm a couple of numbers she gave me. She sounded kind of cold. She gave me the information I needed and proceeded to tell me that someone broke into her home yesterday. Naturally, she suspected me. What are the chances - She gets a postcard from me, calls me and tells me all of her financial woes, and the next day someone breaks into her home (first incident in 18 years). She still suspects me but hopefully we can get past it. Just my luck...

As a followup, the mortgage payment on the home is $2,525 per month and the balance due is about $215,000. She had to refinance it a couple of years ago at 13% interest when her business went under. She said there are all kinds of fees, e.g., pre-payment.

If I take the property subject-to, I think I'll have to sell it. There is no way I could lease option it for $2,500 per month. I guess I could try and refinance it.

Should I get specific information on the mortgage before I proceed? I don't know how much I could pay out in fees if I pay off early but I'm afraid it could be a bundle. Has anyone worked with a mortgage from someone like 'The Money Store'? Also, should I do a title search now given her financial state?

Replies:

lynnhahn

216.78.39.129

"Jeeze!!!!" , Wed 2 Aug 16:08

I think that if I was you I would be saying NEXT!!!

If the lady doesn't trust you than you aren't going to get a deal.

You stated how much the mortgage balance is, but not how much the home is actually worth. Unless there is a ton of equity, you should consider moving to the next one. We can't solve all problems, and trying to can get us into deals that we shouldn't be doing.

Never spend your money on a title search until you have a signed contract and you are sure that you have a deal. No reason to do it before you get a contract.

This deal aside, it is possible to get mortgage holders to give you a "short pay" or "short payoff" which simply means that they are going to accept less than normal for payoff. We have been most successful at this when there is a pre-payment penalty involved. You can't really do anything creative like a l/o or subject-to and also get a short pay.

When dealing with sellers (after you have the signed contract) you should get them to sign a "Authorization to Release Information" form that allows you to get information from their lendors. Always verify the information yourself!

Sorry for jumping around so much, but hope this helps!

Lynn

manneke

63.28.152.66

"Re(1):Jeeze!!!!" , Wed 2 Aug 20:05:

There is a good amount of equity. They owe $215,000, assessed value is $271,900, and market value is probably $280,000.
I'm hoping that she believes that I wasn't involved. She still wants to set up a time to meet so I assume she must trust me, at least a little.

I think given the mortgage payment ($2,525), I'm either going to try and do it subject-to or else as a straight option. No point in bringing up the l/o when I can't do it.

[this message was edited by manneke on Wed 2 Aug 20:06]

lynnhahn

209.214.75.75

"Re(2):Jeeze!!!!" , Wed 2 Aug 22:07

Is the seller willing to sell for the balance of the mortgage? It not, what does she want?

Lynn