What do you do when the property has negative equity?

Your'e absolutely right! Experience is what I'm so eager to learn with an excellent reputation! I have a few realtors in mind. Thanks for that advice! Please correct me if I'm wrong, but I read in Dean's book that if you can't find the owner you can call the lender yourself and ask to negotiate and buy any "liens" that might be on property before it goes to foreclosure and once you have the liens you can see about the owner signing the deed over to you which is then your property to sell at a even cheaper price. I brought that up because my cousin "inlaws" mother doesn't really care from what he said and doesn't wanna deal with it at all. If she doesn't care about it I still wanna find out if I can save it! Your feedback is appreciated!

You can check on the unpaid taxes but banks almost always pay them, its usually not enough of a difference between what is owed on the loan and the taxes. They are usually only a small amount, the taxes I mean. Maybe try to get the amount the bank will accept and find a private lender to buy it for cash and fix it then flip it and split the profits. When people don't want to be helped it awful tough. Tey get frustrated and give up. I went through foreclosure myself and I sure wish I knew then what I know now. Don't get too wrapped up on this one deal cuz you get miss another great deal. Maybe just help them with what you have been doing but keep looking at the whole picture. If this deal doesn't work out, don't give up, in the business that we're in we lose more deals then we get and we ALL have to keep that in mind. We can't get emotionally attached to deals.

Thanks a lot for the info! I appreciate it! And happy home hunting to you!

How about looking at such properties as long term investments in your portfolio. Just have the homeowner deed the property to you, you then rent it out long term while the renter paydown the balance. When the market turns , you sell it for a profit. no money out of pocket, renter paid the mortage until you are not upside down anymore and sell.

I am interested in this discussion because I am working on a similar case as my first deal. In my own case the home owner has told me to do whatever I can do to just take his name off, that he is not interested in making money on this deal. I think that his balance is now higher than the value of the house. But looking at what Jeff has just said, equity could be created if the bank accepts to sell it lower than he owes them.
Now, here is my question, who do I take my offer to? is it the home owner or the bank? note that in my own case the home owner has been written that his house will be foreclosed on the 16th of this November. Please advise. He is winning to work with me in any capacity just to get his name off or just walk away. Is this a good thing to the deal or bad?

I need some guidance from this group that is very knowledgable. My situation is that I am probably going to do a short sale in an investment property that is completely upside down. I know that I will get a 1099 from the lender, but the tax consequences will be very drastic. It is about $ 140K up-side down. I have other properties and all of them are negative and I'm thinking about declaring myself insolvent. Does any one from this forum have any ideas or suggestions? I would greatly appreciate any help. I'm very stressed out about this situation.
Thank you,
Ani

R E Budda check this web site out and watch the video and it will give you something to think about as well. A well know investor sent me an email about this too and I bet Dean knows him also along with other investors as well, here is the link for this site
http://mortgageassignmentprofits.com/findingsellers/
there are other interesting videos there about this to watch also, hope this helps out too.

shawn

Hi Amber, I am receiving many calls about Shortsales. If you don't want to handle this aspect, there are many of here who will take the traffic of Shortsales.

ShortSales can be very lucrative. If you need assistance, call me directly (contacts in profile) I can assist you and together we can close these deals.

Give me a call - I can help in the interim and give you some help with the actual process.

Rico Camacho

Lease with Option To Buy in 3 Years - Find a buyer with bad credit but have cash to put down say $10,000 take $6000 and pay the rears and $1200 for first month rent that leaves you $2800 in your pockets.

Make sure to charge monthly rent $1500 a month $200 go towards down payment to rent to own and $100 go to you each month.

For this to work keep name on of the owner of the house on the mortgage as is just make sure that the monthly payments are made.

The reason I am telling you this I know of someone who is doing this right now! LOL

It's a WIn Win for Everyone as long as the monthly Payment is Made.

You are not selling the house you are selling terms - How much Down and How much a Month one can pay, Forget about what the house is worth for now.

I hope that I could be of Help!

Tony

Tony Grant
One Investors Dream LLC.

Develop an initial offer based on how much equity or profit you want to make with the deal, but be prepared (and realistic) to make a counteroffer that the lender will accept.

Lenders will consider the following factors when deciding to approve a short sale:

borrower's financial condition
property's FMV
cost to put property in sale condition
property's ARV
cost of maintenance of property
cost of selling the property

do your due dilligence and be prepared for a slow turnaround; make other deals while you're waiting for the short sale.

valerie

Hello my name is John.
I might have my toe wet if I can work this out and am looking for a florida connection. I am ofcourse new to the site(s) so my head is spinning.

I received the course last week and have spent nights reviewing when possible-not much reviewed yet.

An old business aquaintence was at my office yesterday and mentione d his home has been in foreclosure for 2 yrs now. Last week he got a call from his mortg holder and stated the following...the3y will pay him (owner) 25,000.00 to take a short sale if interested and he will be out of owing anything more. Kind of unbelievable if you ask me. I'm not sure if the mortg peeps have a short to consider, but I expect owner would know and -why would they call him to consult or ask him anyway! This will be looked into and sounds obscure.

Owner would like to stay in property and would use the 25k for curing this situation (for me preferably), and make payments he could afford. I am doing an analysis on prop value verses his 290k mortg. It's upside down.

I'm not sure how to attack this situation exactly and must get more info from property. I believe I can not assign a short in Florida if I were to strike a deal with bank. I can not purchase it either and owner has rotten credit to obtain new mortg. Sound like an investor opportunity?
Any ideas or able to assist?

I thought I would keep this short but there is still more info I need to get from owner and actually inspect property which will not be a problem.
I will try to review this site as much as possible to review but have obligations which limit my time. YUK!

Property description is nice neighborhood 4 bd 2ba, my drive by shows landscape cleanup (not bad at all) and owner mentioed painting and carpet is mainly the fix up. Owner is a gen contr. and hit bad times with personal issues and economy.
best regards,
John

Coach Jensen,

Thanks for your input here. Was taking copious notes but ran aground when you stated, "...consider lease optioning the home from the owner and sandwich lease optioning it to someone else..."

Coach, in plain English for us Newbie's. I had a couple of calls come in a couple of weeks ago off of bandit signs that were upside down and that left me stumped!! I hated to just walk away without offering them something as a solution. This sounds like it could be one if you can explain it a little more.

Thanks,

Princeadhola

We have the opportunity with a motivated seller to purchase his townhome for what the balance is on his loan - $128,000. This is a fairly new neighborhood -Some of the first homes in the complex have been sold for $140,000. His section is in the $120 - $128 range. The ads for the next section say "starting at $109,000". He even mentioned that he would take $120,000. So here is the question regarding that - How do we pay him less than he owes and keep his mortgage in place.
My primary question is "Is there a way to make money with this townhome".
Thanks, Tony

Newbie breaks ice w/Seller yesterday and Seller immediately offers birddog fee.

SELLER'S PRICE RANGES from $100,000 to $700,000 - sorry can't provide the exact amount!

These are beautiful homes with the following amenities:

*(3-3.5 Bedrooms)/(2-2.5 Baths)
*spacious-2,605 to 3,300 sq. ft.
*courtyards
*well known for school districts
*golf courses
*wineries

HURRY - THIS DEAL WON'T LAST FOREVER!

If there are any interested Investors/Buyers, please contact Ccaligirl for further instructions.

Thanks

Buy the Original loan on property. If the loan is a 1st loan usually the loan can be bought by a buyer with a 12% to 14% yield on the open market. Which means about a 30% to 50% dicount on the note/mortgage balance. Look up "John Behle" on the internet he is the best note man in the business.

EVERY SITUATION IS DIFFRENT BUT I HAVE MADE MONEY OFF OF DEALS THAT OTHER INVESTORS HAVE WALKED AWAY FROM BECAUSE THEY SAY IT HAS NO EQUITY. EX JOE IS RELOCATING AND HASENT BEEN ABLE TO SELL THE HOUSE IS WORTH 100K BUT HE OWES 110K AND NEEDS MINOR WORK. I OFFER TO BUY IT SUBJECT TO AND MAKE THE MINOR REPAIRS AND REFI IN 5 YRS .SO HE SIGNS PROPERTY OVER AND I FIND A BUYER WITH SLOW CREDIT THAT IS TIRED OF RENTING THEY ALSO HAVE A DOWN PAYMENT. SO I OFFER HOUSE TO BUYER FOR 120,000.00 NO CREDIT CHECK NO BANKS . HE DEALS DIRECTLY WITH ME OR ESCROW COMPANY. THE NEW BUYER LEAVES 10K DOWN AND CONTINUES TO PAY THE NOTE TO ME OR ESCROW SO NOW HE OWES 110K BUT HE DONT CARE HE'S LOVING HIS NEW HOME AND HAS 5 YRS TO REFI AND LOWER HIS PAYMENT. SO NOW ORIGINAL BUYER MOVES ON WITH HIS LIFE I MAKE 10K MINUS REPAIRS AND THE NEW BUYER DOES NOT RENT NO MORE ...YEAH!! WIN WIN WIN SOLUTION FOR EVERYONE.

Hello I'm looking to network with anyone interested in getting things going I'm located in the state of virgina and i see a ton of potentials here.

Well in this market you will find a lot of these now. People are walking away from the home because they are upside down.

Each one of these has to be approached cautiously. Depending on whether you are doing a AB close or and ABC will effect the transaction. A lot of the bigger banks that we gave a lot of money to are not so willing to take a loss.

Choose your battles: The smaller banks and credit Unions are more willing to get these homes off their books at a loss. There might not be enough money in them even at that to sell right away, but holding is an option for a positive cash flow.

Always check with agent for comparables before making an offer. There are a lot of these that work just takes some time to dig into them.

Randy Bailiff
Dean Graziosi Success Team Coach

I have been receiving some calls recently from owners who would like to sell their homes, but owe more than their houses are worth. Is there any strategy to help these people and make a profit at the same time? Would a sandwich lease option be a solution? Is it possible to find a buyer who don't qualify for a mortgage now because of credit problem or lack of down payment, but would be willing to pay more for the house, if we give him a chance to own it? And even if they agree to pay more for the house, will any bank give him a mortgage later if they need to pay more than market value?
I have heard some investors have been doing this – what is your advice?

Thank you, Kasia

Hey Kasia, I was in a class being taught by Wendy Patton(search net for her videos) this past week on different stratagies for LO and options and Sandwich Leases. For a home with no equity she says you do a Cooperative option. What this is is just an assignment/wholesale deal that you set up with the seller. Hope this helps!

I have a friend/neighbor that has recently walked away from their house. They are upside down and so don't want to bother trying to sell it. I would love to own their house since it's attached to my own property. I know they are behind on their payments and coming very close to foreclosure although am not sure exactly how much they owe the bank at this point. I am thinking of trying to talk to them about allowing me to obtain their property "subject to" and then rent it out but I'm not sure if that is a feasible option or not. Even though I have done a lot of reading about real estate, I am still a "newbie" because I have not completed my first deal yet. I could really use some feedback and advice about the best way to handle this. I would love to help them not have a foreclosure on their record and would also love to own this property. Thanks in advance for your guidance!

.

i try to get that property because may be in future this property can gain popularity and increase prices...

You may want to analyze each property and determine how much negative equity is in each of the properties you are considering. Each property has to be viewed individually. All you have to do in many case is get an appraisal done and submit it to the bank.
Homes For Sale Calgary

Hay, your new to this game so i say walk away an learn the ropes first start on something a little lest difficult, like a lease option, or a try a contract on a home first, learn a little more first before tryi"g this one , trust me dont waste your time on a house that has no equity, an the banks want that money,

Look, the only way i would tie this house up is, the bank would forgive the money owned on the house, an sell to me at a lower rate,

Be smart dont start in over your head , good luck be smart.

What good is it to the owner if they sell and still can't pay off the debt. Short selling might have been an option in the past, but these days short sales and REOs are extremely hard to negotiate.

It's best to simply walk away from properties with negative equity. The first rule of real estate investing is to never get yourself worked up or emotionally tied to a property. Next.