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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] A JBB Deal... to do or not to do... Posted by Alfred -- CA on December 19, 2001 at 12:44 AM Ward, I have a prospective JBB deal. The property's FMV is 175K. It has a 119.4K remaining balance on the 1st, and a 22.4K remaining balance on the 2nd. No BK going on and no other liens, so total encumbrances = 141.8 K. The OGE is 33K. I think that I can buy the 2nd for around 45% of it's value (9.5K). It would cost another 10K if I had to reinstate the 1st to stop their trustee sale. The property is not in a highly appreciating area and it is in a middle class/blue collar neighborhood. It's in ok shape. My concern is that if I purchased the 2nd and foreclosed, the property might come back to me based on the fact that bidders will only bid it up to 140K (80% of the FMV). The existing encumbrances plus related foreclosure expenses would exceed 140K. So, it would be a good deal if I got the note for 9.5K and the trustor sold or refinanced and cashed me out at full value. But it could be trouble and I could lose money if the house came back to me and I had to rehab and sell it. (If I add up the cost of the note; the advance; holding time, rehab costs; sales costs; etc. it would be hard to sell at a profit.) I'm hesitant to follow through on this deal because of this possibility. I'd like your feed back on it. Is there an outpoint in my thinking or do you agree that it would be risky? Thanks in advance kind sir. Follow Ups: Re: A JBB Deal... to do or not to do... Ward-CA- 6:28 AM, 12/23/01 (0) Post a Followup: Name : E-Mail : Subject : Comments: : Ward, : I have a prospective JBB deal. The property's FMV is 175K. It has a 119.4K remaining balance on the 1st, and a 22.4K remaining balance on the 2nd. No BK going on and no other liens, so total encumbrances = 141.8 K. The OGE is 33K. I think that I can buy the 2nd for around 45% of it's value (9.5K). It would cost another 10K if I had to reinstate the 1st to stop their trustee sale. The property is not in a highly appreciating area and it is in a middle class/blue collar neighborhood. It's in ok shape. : My concern is that if I purchased the 2nd and foreclosed, the property might come back to me based on the fact that bidders will only bid it up to 140K (80% of the FMV). The existing encumbrances plus related foreclosure expenses would exceed 140K. : So, it would be a good deal if I got the note for 9.5K and the trustor sold or refinanced and cashed me out at full value. But it could be trouble and I could lose money if the house came back to me and I had to rehab and sell it. (If I add up the cost of the note; the advance; holding time, rehab costs; sales costs; etc. it would be hard to sell at a profit.) : I'm hesitant to follow through on this deal because of this possibility. I'd like your feed back on it. Is there an outpoint in my thinking or do you agree that it would be risky? Thanks in advance kind sir. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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