New idea for banks and investors

[Hoyt Burdette]

-Problem: banks sell their REOs for below market value, loosing money and hurting the appraisal of near by homes.
-Investors,Flippers and property managers need leads and good properties
Solution: banks need to make deals with investors, so that the bank maintains ownership and the investor has control of the property. The investor gives the bank an estimate of the repairs to be completed. The bank pays for the rehab. the investor sells the house for market value with in 6 months after the rehab. if the house doesn't sell the investor rents it out for 10% and the bank gets an income, until a later date at which the market improves, selling the house for full market value WIN WIN THOUGHTS?????????????

[Bill Gulley]

Welcome to BP!

Good thought, but that would take an act of congress. Banks can't take the liability. That would also put tem in the rehab business with collareral. Unlike you, as a property owner, the only have a collareal interest to sell the property to clear the debt created. They can not contract allowing another party to profit as any overage to the debt is actually due the owner, if any. So the owner may make a claim for any overage.

That's pretty much why they have to sell. Keep thinking!