Hoping for some input,
Owner, does not want the home. He lives in another home, this one is vacant and he is not wanting to be a landlord. He is behind in pmts. (10 mo) Was originally with WAMU now with B of A. Place needs work but is livable with some elbow grease. He owe's $158,000 Comps are $ 160 to $ 170k. He is willing to give me the key's and not have it be his problem anymore with no money down. He will keep loan in his name. I talked with the lender about a modification and it has been approved. New mod pmts $375.00 market rents $900.00. Home is in good neighborhood with nice homes on the street. I believe it has potential. What forms do i need to be signed to get control of the property?

This is an investment property for me. Has anyone done a deal with modifying the loan, to close on a deal and make the numbers work?
Does this deal have any life to it from an outside eye?
Exit plan is to buy and hold.
Will be reading for input.
Thanks

This deal does have a lot of potential along with alot of risk.
One way is to lock up a long term sandwich lease ,then sell the contract to another investor.
Another which might be more appealing is if you do a sandwich lease use the t/b's downpayment to cover the backpayments. Then collect on the monthly cashflow to compensate for the loss. Long term this could add up $$$.
Some of the best forms for this are located in Michael's manuel. It can be purchased for a good price and cover your butt form litigation.

Dion, this deal won't work as a lease purchase of any kind from what I see. First, the homeowner has stated he wants no part of being a landlord and, second, he is ten months behind on his mortgage.
salasdunes, as a buy and hold, the cash flow potential seems terrific. Make a written offer Subject To, which seems to have already been agreed to verbally. The contingency being the homeowner needs to complete the loan modification for you to close.

The feedback as usual here is priceless. One of my delema's is what do i put for a purchase price? Because with the modification, im looking to have the balance modified as well. The owner is looking to meet with me to sign docs today and im needing to know how to handle this part.

Again Thanks

salsadunes, first, I forgot to ask in my previous reply: that $375/mo mortgage payment is only a part of the picture. How much are taxes and insurance?
As for the purchase price, the homeowner should know the adjusted balance of the new mortgage if he already has a monthly payment, no? If not, make the purchase price the new balance as determined by the bank, subject to your approval, of course.

Michael,
I confirmed the new pmt will include T & I. I did add that this is subject to the owner getting the modifiction complete. That info was huge, thanks. I have a time to have contract and deed signed tomorrow at noon. Hopefully iv crossed mt t's and dotte my i's. Im asking the owner to pay the required initial pmt to get modification done as well.

I asked the bank today how come after 10 months of no pmt how come the loan is not being forclosed on? They said becaue they were giving the owner time to make current. Have you heard of such a thing? Also, have you heard of banks lowering the principle balance of a loan with a modification? The first ladie from the bank said yes, then the second one i talked to said very unlikely. Of course im not sure.

Thanks

I must say that is surprising. What are the terms of the modified loan?

This, too, is surprising. Ten months and the bank hasn't begun the foreclosure process? Wow. Kinder, gentler bankers these days.

Now this is more like it. One hand doesn't know what the other hand is doing. Personally, I have not been involved in loan mods or short sales, so I'm not the last word on this and what banks will and won't do.