Buying a property with the owner behind on her mortgage

[Brandon Rush]

Hello Friends,

I am working an off market deal in Connecticut which the owner is behind on her mortgage payments. If I heard her right, she said $20k behind. I do not have confirmation on how much the current mortgage balance is but according to prop stream it appears to be around $54k. ARV in this specific area is $220k-$240k, so there is some opportunity here. I have not seen the property yet but will be visiting this weekend, just looking to get ahead of the conversation.

Question, in situations like this where the owner is late on their mortgage, what options do I have for purchasing?

I am assuming I could do cash, hard money, or maybe even a mortgage. What do you think?

As always, thanks in advance.


 

[Michael Ablan]

@Brandon Rush - You could do any of them really.  

Cash - Nothing really matters if you're willing to pay all of the costs to get the house

Hard money - They're going to want to see the plan.  What are you buying it for.  How much do you need to repair it.  What's it worth when you sell?  You have a short window to make this happen and the stakes are high, so make sure you're correct

Mortgage - As long as you have 20% down, then you can buy it. Then refinance it in 6 months for the ARV if you get it performing