Original message
| wgreau
   |  "Thoughts & ideas, please....(Long)"
, Sat 5 Aug 12:55 
Anyone have an idea as to how I might pursue the following:
Guy calls me with a small (3/1) house he is falling behind on payments. He bought it with a 1st of $50,954 @ 7.5% 30yr. 12-23-93, rehabbed it with a 2nd for $15,162 @ 12.73% 10yr. 4-22-96, sold it to his tenant that lived there while he rehabbed it, on 4-4-00 for $68,000 ($3,000 Dn Pmt)@ 12% w/pmts of $635. He has a negative cash flow of $39.00 per month. This house could not likely command a higher selling price as it is. Maybe another $2,000 or so at best.
The buyer has made only two payments and is now out of work and can't pay. My seller is in arrears one month on the 1st mortgage. Payment is about $450 PITI on the 1st and $224 P&I on
the 2nd = $674. He has initiated a ten day Notice to Leave Premises which will be followed by the required form to initiate a court hearing for eviction.
Present bal of 1st = $47,254.69 (+-) 7/1/00 in arrears 2 mo.now
" " " 2nd = $10,867.32 (+-) 8/1/00 this is current
I could make offer "subject to"... sell it for $68,000 with $3,400 Dn & pmts of $675 for 209 months @ 10.5% with 1yr extendable balloons for ? years. Is it worth it?
Or @ 11% for 230 months, etc. $675 is higher than most rents would be in this area by maybe $125.00 or so.
I feel this property would not sell quickly in the standard fashion (Realtor & institutional financing) and do not want to run that risk. While the neighborhood is decent, clean & quiet, this house looks on the tacky side and am not certain if paint would help much, though the grounds are clean & neat.
Any thoughts & ideas will be greatly appreciated, thanks.
William Columbus OH
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