1st Distressed Property Client- ANY IDEAS???

1st Distressed Property Client- ANY IDEAS???

I have my first distressed property client. Here is her situation:

(She didnt give me exact numbers... only her estimates)

Owes just over 90k on mortgage

Mortgage is 610 per month

Late about 3-5 payments on mortgage

Behind on property tax- approximately $1,000-$2,000

Appraised at 120k about 3 years ago

Recently appraised in the high 80s... not sure if because of market or etc...

So she now owes more than it is wroth, has been close to foreclosure several times but has been in close contact with bank and has been allowed to keep house since now... I think bank is starting foreclosure process but she is going to ask bank if she can make another $610 payment to keep house for another month...

She is quite motivated to get rid of house & mortgage, but I believe she is still looking for a profit on the whole deal....

Any suggestions DG family??? I appreciate all help!




Do a rent to own option with her. Ask her she let you pay back mortgage and taxes and take over home. Find another renter to pay mortgage. Up the mortgage a couple 100 bucks so you will have some cash to put in your pocket each month.

Distressed Property

Short Sale sounds like her only option. Unless she can get money from a relative, 401k, IRA Etc. She needs to act now! She has no equity so how can she profit? Refer her to a realtor that does short sales. She needs a dose of reality before it to late. That is how you can help her! Move on to the next deal.

That is my advise based on the info you provided.

Good Luck!
Michael Mangham
MD Home Acquisitions LLC


Knowledge is power, but execution trumps knowledge. Tony Robbins

http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site

Distressed Property

Do a rental or get a buyer to purchase the property from you get a finder fee.
check your list and see if you have a fit.

Good luck,



May each day get better


It does appear that she is upside down in the property.Meaning she owes more than it is worth, probably due to the current economic situation.

First off, do you have the money to catch her up in back mrtg and tax payments? If you do you might want to consider a lease/option with someone else. For whatever reason, she has dug a hole for herself and keeping her in the home might become a problem for you right at the start.
I don't think assigning would work simply because there is no room for another investor to walk in and sell it for a profit

You also might want to think about the short sale option, and understand that is a lengthly process, but you could buy it under market.

Just a couple options for you to consider, hope it helps.....Jan

If you were able to do a

If you were able to do a lease option to buy and catch up the payments would the rent cover the expenses and give you cash flow? That would be my first strat knowing that the market will eventually go back up. If not I would say SS is the only way to go. Either way you would be smart not to rent to the current owner as she may stop paying you also and you will be stuck with the payments.

Find a buyer that will give

Find a buyer that will give her some pocket change

Get your finders fee

Move onto the next property


First off, thanks everyone for helping out... these are some good suggestions.

B.C. --> I could most likely have the cash to catch up on payments.

The mortgage is 610 and rent above 500 in my small town would be considered a bit high.

The owner of this house wouldnt be staying in the house, she owns another home, this was one she tried to flip.

Thanks for all your help and ideas DG Famiy... I'll take my situation along with these ideas to the Success Academy coaches and see what they think as well.

Thanks Again!!



from you last post


There does not look like any room to do anything. rent would not cover mortgage, no equity. Possible lease option may get you a higher monthly payment. You mentioned she tried to flip it. Did she get it fixed up or does it still need work?

Throw it out to investors on your buyers list for a finders fee. Look for the next one.

If the success academy coaches come up with something let us know how it goes.

Good luck with it



Yea you're correct... not much room for anything. I called in to the academy and described my situation. They told me the same thing too, and then told me to ask her if she would sign a release form to allow us to contact her lender about a short sale... I brought it up to her but she didnt seem too excited about it. Anyway, I'll keep in contact with her and see what she decides.



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