The phone call was from a guy in Tooele who received a postcard I had mailed out. He was interested in doing an FHA streamline refinance. After he took 2 minutes to explain that his home was going to be sold at auction on Wednesday, I knew he wasn't going to be able to qualify for any conventional loan.
The property is just over 3,000 square feet, built in 1999, and worth about $205,000. He told me he only owed 105,000 on the property which meant he would be losing out on about $100,000 in equity. The bank would stop foreclosure procedings if he were able to bring them $14,000 to make up on missed payments, late fees, and attorney's fees. No one in there right mind would give this guy $14,000 six hours after talking to him. Luckily, i'm not in my right mind.
An investor of mine came up with the cash, and we paid the owner the money he needed, and secured it against the property. The key is how we secured it. The owner was willing to transfer title of the property from his name, and give us the property. When he fulfills his obligation, and pays back the $14,000 plus interest, we will deed the property back to him.
Essentially we are looking at this as a hard money deal, but instead of simply putting a lein on the property, we actually own it. Not a bad deal.
I'll try to get pictures of the property up as soon as I can.
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