verbatim 1 Report post Posted November 9, 2009 Out of state seller with a 1800 sqft 3/2 with a pool. Loan bal 130knote : $1,300behind : $5,100comps : 135k Other homes in the area are renting in this range although they look more updated with new paint and kitchen cabinets etc but dont have the pool she does. Aside from the fact that she's 3 months behind it looks like a good CA candidate. She says she is about to make a payment so it will only be 2 months behind. She had it listed with 3 different realtors over the past 3 years and 1 management company she was not satisfied with so she would like to sell. States she is thinking of trying to do a short sale with lender. So, would you let the fact that she is behind stop you from attempting a CA? If not how would you structure it? Share this post Link to post Share on other sites
MichaelC 160 Report post Posted November 9, 2009 Out of state seller with a 1800 sqft 3/2 with a pool. Loan bal 130knote : $1,300behind : $5,100comps : 135k Other homes in the area are renting in this range although they look more updated with new paint and kitchen cabinets etc but dont have the pool she does. Aside from the fact that she's 3 months behind it looks like a good CA candidate. She says she is about to make a payment so it will only be 2 months behind. She had it listed with 3 different realtors over the past 3 years and 1 management company she was not satisfied with so she would like to sell. States she is thinking of trying to do a short sale with lender. So, would you let the fact that she is behind stop you from attempting a CA? If not how would you structure it?Verb, yes indeed, I would be bothered by the homeowner being in arrears. That's a definite problem these days with many homeowners who are renting their property. Out of the blue a tenant finds themselves with a notice from the bank that the house must be vacated. You don't want to be anywhere near that should it come to pass.The numbers don't support a CA, either. She has no equity to speak of. Meaning you need to market this house at around $10K above value to get the homeowner to the closing table without having to come out of pocket. Who's going to meet your price? Share this post Link to post Share on other sites
verbatim 1 Report post Posted November 10, 2009 Out of state seller with a 1800 sqft 3/2 with a pool. Loan bal 130knote : $1,300behind : $5,100comps : 135k Other homes in the area are renting in this range although they look more updated with new paint and kitchen cabinets etc but dont have the pool she does. Aside from the fact that she's 3 months behind it looks like a good CA candidate. She says she is about to make a payment so it will only be 2 months behind. She had it listed with 3 different realtors over the past 3 years and 1 management company she was not satisfied with so she would like to sell. States she is thinking of trying to do a short sale with lender. So, would you let the fact that she is behind stop you from attempting a CA? If not how would you structure it?Verb, yes indeed, I would be bothered by the homeowner being in arrears. That's a definite problem these days with many homeowners who are renting their property. Out of the blue a tenant finds themselves with a notice from the bank that the house must be vacated. You don't want to be anywhere near that should it come to pass.The numbers don't support a CA, either. She has no equity to speak of. Meaning you need to market this house at around $10K above value to get the homeowner to the closing table without having to come out of pocket. Who's going to meet your price?Good point on not wanting to be part of a foreclosure in the making by doing a CA. I only entertained doing it if the lender would put the missed payments on the back end of the loan making it 135k which brings us to your 2nd point. The owner will have to bring $ to closing unless the purchase price is raised. I assumed for a second that a tenant buyer wouldn't have a problem initiating a purchase today at 5-10k more than fmv as they will be buying in a year or 2, if they close as most do not. I mean I probably could list it for 137.5k and keep 2500 & cross my fingers that A. she doesnt go into foreclosure B. She has $ to bring to closing or a loan officer smart enough to put closing costs into the loan but, what are the chances of that lol Share this post Link to post Share on other sites
MichaelC 160 Report post Posted November 10, 2009 verb, for $2,500 it isn't worth the stress and aggravation. Share this post Link to post Share on other sites
Jonathan RexfordFL 8 Report post Posted November 10, 2009 Before you attempt to do the CA get her to do a Loan Mod. If a Loan Mod cannot happen then sign it up for a Short Sale. This thing is a time bomb. I am seeing several rent to own properties in my area that are being filed upon for Foreclosure. Share this post Link to post Share on other sites
<Steve> 82 Report post Posted November 10, 2009 I am seeing several rent to own properties in my area that are being filed upon for Foreclosure.That can give L/Os a black eye. I don't deal L/Os with sellers in forclosure or are behind in payments either. I've had some tenant/buyers ask this question and I reply that I don't deal with properties in foreclosure or with sellers with major financial problems that can lead to them loosing the house. Share this post Link to post Share on other sites
Jonathan RexfordFL 8 Report post Posted November 10, 2009 I am seeing several rent to own properties in my area that are being filed upon for Foreclosure.That can give L/Os a black eye. I don't deal L/Os with sellers in forclosure or are behind in payments either. I've had some tenant/buyers ask this question and I reply that I don't deal with properties in foreclosure or with sellers with major financial problems that can lead to them loosing the house. As we know that market rent is market rent. We cannot expect to get 2K per month for a 200K home in my area. Here is a neat quote I heard. I am actually going to a property mgt seminar this weekend in tampa. But he will as the seller/owner "HOME MUCH ARE YOU LOOKING FOR" If they say "WE NEED" that is when you get worried. Because NEED is much different than WANT. I can live with WANT. I am waiting for the seller/owner say "HOW MUCH CAN THE HOUSE AFFORD TO PAY YOU"...I will probably roll over then. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted November 10, 2009 . . .I am waiting for the seller/owner say "HOW MUCH CAN THE HOUSE AFFORD TO PAY YOU"...I will probably roll over then.Please get that on video, Rex. Put it on YouTube! That'll be akin to finding BigFoot. You'll be rich and famous! Share this post Link to post Share on other sites
<Steve> 82 Report post Posted November 11, 2009 . . .I am waiting for the seller/owner say "HOW MUCH CAN THE HOUSE AFFORD TO PAY YOU"...I will probably roll over then.Please get that on video, Rex. Put it on YouTube! That'll be akin to finding BigFoot. You'll be rich and famous! Not a bad line. I might try it on a couple of sellers. Share this post Link to post Share on other sites
Jonathan RexfordFL 8 Report post Posted November 11, 2009 Steve, That is one of my mail lines when I get any type of Seller Objections. Share this post Link to post Share on other sites
randian 0 Report post Posted November 12, 2009 I am actually going to a property mgt seminar this weekend in tampa.David Tilney's? I've taken it, it's pretty good. Share this post Link to post Share on other sites
Jonathan RexfordFL 8 Report post Posted November 12, 2009 Yeah its Tilney's. I have also been a few times. This year I am going with a friend of mine. Share this post Link to post Share on other sites
