Q: I just received a lead and do not know what to do. The house value is 950k. Seller owes 672k on the house. Seller wants 825k. House is 4000 sq. feet and is 15 years old. Seller in chapter 13 bankruptcy. Paying 3k every month. 11k on taxes and insurance per year.
WHAT SHOULD I DO?
PLEASE GIVE ME STEPS AND DIRECTIONS TO GET THE BEST OUT OF THIS DEAL AND QUICKLY?
A: First things first, if this person were to sell the house via a realtor, they would be looking at a net of 807, so the asking price is pretty high.
Secondly, when we buy big expensive homes like this, we look for an even greater reduction in price. Why? These homes are harder to sell, thus we need to protect ourselves. Personally, I would look at doing an option only on the house for 6 to 9 months or right around 570k. Which is less than
what they owe.
Given all of this, the only offer I see that makes any sense is to take an option on the house for what they owe and look to sell the house via one of our auction methods. We cover the expense of the marketing for the house, they make the payments on the house.
Always do tons of research on the higher end homes.