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sarge006

Still standing at the Plate--here comes another one!!!

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Well--Bandit signs do work!! Received another call--here is the scenerio-- 4/2 with full finished basement/ 1.25 acre wooded lot/ 20 yrs old/ large detached garage--appraised 2 months ago at 169,700. They are in foreclosure and at this point--they are about 90K in arrears which includes property taxes. It is presently still listed with a Realtor for 30 more days (so far they can't move it at 155K). I told them they were running out of time and if it doesn't sell thru the Realtor--then I would try and at least save their credit and get them something to walk away with. This is what I am thinking---Wholesale it out for 110K and give them 5K-6K to get into another Lease Option--that would leave about 14K profit. I would try and not go lower than 105K as a wholesale price. Am I in the Ball park here?? ( I understand that I have to check for other Liens though--even though they said there isn't any). I need some input from all you seasoned professionals on this Forum. What are the steps you would recommend. THANKS--SARGE

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OK. I was thrown for a minute because you wrote they were $90K in arrears. :o That might have been one for the record books. :P

Forget this as a lease purchase of any kind. With the homeowners being $13K behind and growing monthly, a lease purchase won't fly. Despite a $170K appraisal, it isn't selling at $155K, so the true market value is somewhere south of that. So if you want to wholesale it, you've got to keep all this in mind. The question you always have to ask is whether or not there is a worthwhile spread between your purchase or option price, and what you can expect to quickly resell it for.

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