QUOTE (ctang @ Oct 25 2009, 07:28 PM) Hey Neill, that`s no problem. Appreciate your feedback.
My exit strategy depends on what I will and will not be able to do first.
The house is owned by the bank and has just been listed couple days ago.
The realtor has tried to find the total loan bal to see if it`s a combination of 1st and 2nd but the bank is keeping that info private. The realtor said since the bank has not disclosed it there`s no other way for me to find that out. Is that true?
I believe you`re correct on the AFS as it is bank owned
My exit strategy was to owner finance it as I`d would have bought it with a wrap from the vendor/seller (but now that won`t work since the seller is the bank.)
Seems like the only way I can buy from the bank is to make a low ball offer and pay cash ( which means i will need to get a mortgage thus defeating the purpose of Quickturns..)
Any suggestions? ....other than Move On?
If you want to get an idea of mortgage amount, you could pull title on the place - usually it will show the amount of the original mortgage (although if you are a REIN member, you may have taken a tip that says some banks will register on title the full appraisal amount for a re-advanceable mortgage, so that if you go for an increase later it will not require a title amendment....)...
Quite frankly though, the amount of the default should not be the deciding factor in presenting your offer, IMO (and we are newbies with the Ron LeGrand stuff, so I would be curious as to what the folks with more experience would say). Out here in Calgary, there are some mortgage fraud foreclosures where the banks asking price is over 100k less than their original advance (!) They know that they have to sell at what the place is worth, and the rest will be a write-off, so govern your offer accordingly on what your needs and wants are, not theirs....
And yes Ron preaches in/out no money/credit - if you had to put it into your inventory as buy/hold, or private mortgage quick turn, would that be a big deal? You could also try for a longer closing period and once you have control of the property (aka an accepted offer), you are within your rights to see if you can get the quick cash sale (Handyman special - cheap cash ad). Again, I think there was talk about banks being hesitant about you assigning your interest to another buyer, so you might want to check to see if a simultaneous closing is even possible where you are....
Lots of options, but you are correct in that it all begins with having a spread.
Hope that helps
Neill