The former owner of this property has contacted me and we have met on the same day. It was a little house in a nice area. More than 12 months in default, foreclose process going on, reinstatement is about $15k, the house is in as-is condition. There is no chance to sell it “By Owner”.
I did my cash offer that was 75% roughly. And the seller rejected it. I said “I hope you will sell it by yourself” and left the house.
After 3 months I’ve contacted this owner one more time just to remind him about my offer. Now the situation was worse: a reinstatement for the mortgage was more than $21K, they were in a rush on moving out to another address and still had no enough time for this complicated step.
I offered to pay all their debts and stop foreclosure and offered one more month living for free on the premises. And this was exactly what they needed! We have signed paperwork on the next day and after 5-6 days we have stoped a foreclosure process.
Here are some pictures that show what we’ve got after they moved out.
The house required another 10-15k in repairs: new paint, new carpets, new appliances, new lights, and yard work of course. We had to work quickly because the next project has been coming soon.
All updates were done in four weeks and a new owner decided to buy it after I sent him the footage. We didn’t list this house. We didn’t advertise it at all.
See pictures AFTER:
New owners are happy to see an appreciation of this property. This area grows fast and today Fair Market Value of this house is higher than they paid for it.