All Forum Posts by: Stephen R.

No

Me too...

Maybe "force" was the wrong word. 

The family couldn't afford to pay and let the house go into foreclosure. But as she didn't have a will, it is also subject to probate. 

Based on my estimation the FMV is about $125k and she probably owes about $135k based on the sale price and payment schedule. Of course I need to verify all these numbers but for the sake of argument let's assume they're accurate. If I plan on picking it up as a buy and hold rental and I can generate positive cash flow at $135, even though its over the FMV, would it make sense, given the time, headaches and complications of a short sale to pay what's owed or should I offer the $125?

Denise,

Thanks, I didn't think of that. So in that scenario would it be best to allow the bank to foreclose and then deal directly with them so the family doesn't take the loss? When is the best time to make the offer?

I'm not opposed to work, I see the 5 hours or the 40 hours as education; you learn by doing. I just don't want to get burned on my first deal out of the gate. 

I'm new to BP and REI

Scenario: I'm looking at a property that I intend on buying and renting.  It's a 2BR, 2BA, 1145 sqft condo. It is currently in foreclosure, (or pre-foreclosure and subject to probate.) I am familiar with the complex, the now deceased owner and her family, although I haven't approached them with any offer to buy. As I understand it, the pre-foreclosure period is the best time to buy, especially since I have a rapport with the family.

Although I don't have the exact numbers yet, the fair market value looks like its teetering on what is likely the amount owed. Based on the BP calculators I should be able to generate positive cash flow even at full market value. However, depending on the actual amount owed and the repairs/updating costs, the offer I would make may come in at, or just below, the amount owed. So my question is: What would be the advantage/disadvantages of forcing a short sale over $5 or $10K?