dealmaker
07-18-2006, 01:51 PM
Back in spring of '03 I bought a 2/1 off the MLS and sold it the same day on one of my "specials", "owner will finance with $2K down". I grossed $16K on the deal and never touched it as the seller had done all work for a contract that fell through.
Now fast forward 3 years, buyer (husband) has spent 1/2 of that time in jail, she finally divorced him and kept the 2 kids, gets a new boyfriend in with her. In the 3 years I think they may have made ONE payment on time so I've been getting an extra $40/month. She tells me she's going to move out of state and wants to give house to her Mom, who's been making her payments anyway.
Her Mom called me yesterday to bring the payment (including late charge) and wants to find out about "paperwork" on the house. We set up a meeting for Wednesday evening. The guy is no longer in the picture, not sure if he's still in county lock-up or just gone. Mom and her husband want to get the deed-they're living there now, I think.
The mortgage has a due on sale clause so I'm perfectly within my rights to call it, it's 8 1/2%, $62,250 balance, it's a 30 year amortization with a 10 year balloon, so it's got 7 years to run. On another of my deals I could probably get about $70-$75K on the open market.
At a minimum I'm going to charge them for drawing the documents, and make them do all the work of tracking down the missing son-in-law and getting his signature. 8.5% is a bit low for shaky credit folks and I'd like to "goose" my income a bit if I could.
Give me some ideas here. Or if you think I'm just being greedy, tell me that.
Thanks
dealmaker
Now fast forward 3 years, buyer (husband) has spent 1/2 of that time in jail, she finally divorced him and kept the 2 kids, gets a new boyfriend in with her. In the 3 years I think they may have made ONE payment on time so I've been getting an extra $40/month. She tells me she's going to move out of state and wants to give house to her Mom, who's been making her payments anyway.
Her Mom called me yesterday to bring the payment (including late charge) and wants to find out about "paperwork" on the house. We set up a meeting for Wednesday evening. The guy is no longer in the picture, not sure if he's still in county lock-up or just gone. Mom and her husband want to get the deed-they're living there now, I think.
The mortgage has a due on sale clause so I'm perfectly within my rights to call it, it's 8 1/2%, $62,250 balance, it's a 30 year amortization with a 10 year balloon, so it's got 7 years to run. On another of my deals I could probably get about $70-$75K on the open market.
At a minimum I'm going to charge them for drawing the documents, and make them do all the work of tracking down the missing son-in-law and getting his signature. 8.5% is a bit low for shaky credit folks and I'd like to "goose" my income a bit if I could.
Give me some ideas here. Or if you think I'm just being greedy, tell me that.
Thanks
dealmaker