I have what I think might be a potential deal my hands but will admit this would be the first deal of this kind that I have been involved in, as up until this point I`ve been following the conventional 20% down, buy/hold strategy.
It`s a 4 bed/2 bath 1100sq/ft home. The individual who I have spoken with is 3 payments behind and his mortgage is $1900/month which is high based on the fact that the house just got apraised for $226k. He is also being foreclosed on.
The home owner has not so great credit and used a US based lending company as it was the only lending institute that would finance him which explains the high mrtg payments.
The home owner has 198k in total owing on the house with both a 1st and a 2nd both with the same lender.
I ran a few ideas past the homeowner as to what I could do to get him out of this situation and told him to talk it over with his wife and if it`s something that interests them please phone me back.
I should note that he mentioned his mortgage is assumable, and one one of the exit strategy I explained to him was assuming his mortgage and bring his mortgage payments up to date and he would be able to leave with credit in tact.
Well he phoned me back and obviously talked with his lender and told me they are calling due there "high risk loans" and returning back to the United States and that me assuming the mortgage and cleaning up his mortgage payments is not something there interested in.
This sounds odd to me about what the lender said?? Could the home owner be pulling my leg?? Does anyone recommend a alternate strategy?? The home is in good condition and in a good neighborhood.
My initial plan was to assume his mortgage, bring his mortgage payments due, put some lip stick on the house and put it back on the market to sell due to the fact that rent would not cover the mortgage payment if I were to rent it out.
Any information from people who have experience in this field would be much appreciated as to whether this deal should be pursued or just left alone.
Thanks!
Shane
It`s a 4 bed/2 bath 1100sq/ft home. The individual who I have spoken with is 3 payments behind and his mortgage is $1900/month which is high based on the fact that the house just got apraised for $226k. He is also being foreclosed on.
The home owner has not so great credit and used a US based lending company as it was the only lending institute that would finance him which explains the high mrtg payments.
The home owner has 198k in total owing on the house with both a 1st and a 2nd both with the same lender.
I ran a few ideas past the homeowner as to what I could do to get him out of this situation and told him to talk it over with his wife and if it`s something that interests them please phone me back.
I should note that he mentioned his mortgage is assumable, and one one of the exit strategy I explained to him was assuming his mortgage and bring his mortgage payments up to date and he would be able to leave with credit in tact.
Well he phoned me back and obviously talked with his lender and told me they are calling due there "high risk loans" and returning back to the United States and that me assuming the mortgage and cleaning up his mortgage payments is not something there interested in.
This sounds odd to me about what the lender said?? Could the home owner be pulling my leg?? Does anyone recommend a alternate strategy?? The home is in good condition and in a good neighborhood.
My initial plan was to assume his mortgage, bring his mortgage payments due, put some lip stick on the house and put it back on the market to sell due to the fact that rent would not cover the mortgage payment if I were to rent it out.
Any information from people who have experience in this field would be much appreciated as to whether this deal should be pursued or just left alone.
Thanks!
Shane
