Is This a Possible Deal of Some Kind?

[Alex Hart]

I was contacted by a very motivated seller who is ready to get out from under her house payment. She bought the house on February 21 & lost her job on February 25…ouch!!

She has found a new job but her pay has been cut by 40% and she is struggling to support her kids as a single mother. She contacted me to see if I would buy her property. Obviously there is no equity at all.

I’ve spoken to some realtors in the area and they say the comps show a sell price between $160k-$167k. The homeowner owes $165k. Since I’m still pretty new to investing I’m not sure if there is a way I could help her. I was thinking of doing a Sub2 but not sure.

House Value: $160k-$167k

Owes: $165K

Payment: $1180.39 (Includes everything, Mortgage Ins, Taxes, Interest, and Homeowners Ins.)

Interest Rate: 4.75%

The property is located in a well desired area and the seller says the property is in mint condition. That will have to be verified of course.

She has yet to miss a payment but is afraid she will very soon.

Am I missing anything that would help to determine if this is a deal of any kind? How would you approach this? Is there anything here? Advice would be greatly appreciated.

Thanks.