Posted by Aaron C on November 03, 2002 at 15:08:35:
I got a call from a woman in her 70s who has a mortgage for sale. The property is a 3 bedroom, 1 bathroom house on 10 acres of land. Rough comps on the property come to $55-60,000. Most research is leading me to believe it will go higher, but I figured I'd stick with the low numbers for safety. Here's the facts and figures-
Mortgage is in first position. No other mortgages.
Mortgage originated by seller in 12/91
9.5% interest
$40,594.25 still owed.
Original mortgage amount $45,000
Payments are $378.38
30 year amoritization
Payment history of payor has been shaky, with some missed payments, late payments, etc. While they are still making regular payments, the entire mortgage is technically 1 year behind.
Mortgage holder asking $30,000 for the mortgage.
I have the seller's permission to contact the payor and was going to talk to them about refinancing if I offered them a discounted payoff. Of course, I don't know what their credit looks like, but there appears to be some good equity in the house to support a refinance if I can interest them in something like a $5,000 discount. I have not made a formal offer to the seller yet, but she is flexible and just wants to get rid of her headache.I was also thinking about tying this up with an option and selling to another note investor, but the few that advertise turn out to be wannabe brokers who don't seem to know anything and certainly don't have funds to buy.
Any ideas/input?