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We had our home under contract for 3 months - buyer finally removed all contingencies but set a close date of 8/31/2007 with a 48 hour vacate. We've been looking for a home to rent in the Parker area and while there are options out there with what we're looking for (4-6brms/4+bath) we found a home that has a 1.3m appraisal, 1st and 2nd with GMAC at 1.2, has been in foreclosure for 50 days(?), price reduced to 1m with no interest from any buyers. Broker suggested a short sale offer to the bank at 600=700K. We are looking for a private investor/s that could facilitate a solid cash offer, asap. We'd pay a year rent of 30-40K up-front and make required "sweat equity" investment in new carpet, paint, appliances. Look for lease/option consideration in years 2-3. Welcome any thoughts on avenues to pursue. Proceeds from my home sale (1.75m) go to settle my Chapter 13 in full and leave me about 50-70k in cash within 30 days, credits shot and I am in the midst of another start up endeavor - so I don't have allot of time to waste looking at "options".
Thanks in advance.
You will probably need an owner carry note you can sell (to a local bank) or a hard money loan.
OK - Does it matter how close the foreclosure date is? If the property goes to foreclosure does it effect the banks portfolio and if so how badly does a group like GMAC want to move portfolio assets prior to foreclosure with rising interest/basis points and the lending market getting ridiculous (i.e. how much can/will they write off with the market as is and getting worse?)
Thanks in advance
Assuming your numbers are correct, then there would be sufficient equity for a hard money loan. The rate will suck, as will the costs. As far as private investors go, be somewhat careful on how much info you give out. If you really are able to steal the house for so far under value, what would stop them from removing you from the equation and buying it themselves...
Prior to the sale date the owners have a chance to cure - that is bring the loan current. The owners need to file a right to cure notice 2 weeks prior to the sale date.
After the sale the owners can redeem the property by paying the full amount plus interest to the public trustee. They have 75 days to redeem. The first subsequent lien holder (namely the 2nd) gets 10 days, and the 3rd thru the nth get 5 days each. Owners & lienholders need to file a notice to redeem with the public trustee in the county that the property is located.
You can look up the Notice of Election and Demand (NED) with the Clerk & Recorders office for the sale date.
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