- Joined
- Aug 21, 2008
- Messages
- 25
Hi,
Can I please get your thoughts on this quick-turn deal I`m considering:
A young couple in Airdrie have split and want to sell their house for amount owing. My Strategy: Acquire house for Debt by Agreement for Sale - Exit with Lease Option
Listed: $358,000
Owing on Mortgage: $338,000
They are half way through a 5 year mortgage at 5.9%. Monthly payment is $1800.
House Details: 2 storey, 1700 sq ft, attached garage, 3 br 2/5 bath, partially finished basement, deck, house is 6 years old.
Note: They have missed payments of $3500 on mortgage and $1,000 property taxes.
This house seems like a good candidate to acquire for the debt by way of Agreement for Sale. And since there is little/no equity it also seems like a good candidate for a Lease To Own exit strategy. (do you agree?) But what do I do with the payments/taxes they owe? (i`m worried that the bank will begin foreclosure proceedings if payments are not brought current)
- Should I ask them to bring current before the sale (assuming they can)?
- Or pay it myself as part of a lease option deposit I hope to collect?
- Or ask them to make 3 future mortgage payments in lieu of me paying this debt (assuming they would or could)?
Thoughts/advice on this deal?
Thanks!
Jim
Can I please get your thoughts on this quick-turn deal I`m considering:
A young couple in Airdrie have split and want to sell their house for amount owing. My Strategy: Acquire house for Debt by Agreement for Sale - Exit with Lease Option
Listed: $358,000
Owing on Mortgage: $338,000
They are half way through a 5 year mortgage at 5.9%. Monthly payment is $1800.
House Details: 2 storey, 1700 sq ft, attached garage, 3 br 2/5 bath, partially finished basement, deck, house is 6 years old.
Note: They have missed payments of $3500 on mortgage and $1,000 property taxes.
This house seems like a good candidate to acquire for the debt by way of Agreement for Sale. And since there is little/no equity it also seems like a good candidate for a Lease To Own exit strategy. (do you agree?) But what do I do with the payments/taxes they owe? (i`m worried that the bank will begin foreclosure proceedings if payments are not brought current)
- Should I ask them to bring current before the sale (assuming they can)?
- Or pay it myself as part of a lease option deposit I hope to collect?
- Or ask them to make 3 future mortgage payments in lieu of me paying this debt (assuming they would or could)?
Thoughts/advice on this deal?
Thanks!
Jim