How I Picked Up a Quarter Million Dollar House in New York for Free!

Let me explain. By picking up a house forto pay the $1,800 per month mortgage, including
“Free” I mean we bought a housetaxes and insurance on top of all her other bills. It
with no money down and no mortgage liability.was just too much.
It is in Sullivan County, NY. It appraised atShe tried to sell the house, but the broker told
$240,000 in May of 2005!her that to be able to sell at the Fair Market
I know, a quarter of a million dollar house in NewValue of $260,000, would probably take at least
York, for free?60-90 days, as the market was slowing.
Don’t believe me? (SeeShe desperately did not want to squander
Here is how we did it and you can too!another 5 grand or more of her savings as her
The trick is to find someone with a pressingoldest girl was already in high school and would
personal and/or financial problem that can beneed the money for college.
solved by getting rid of their property, aShe saw our ad and contacted us. Her mortgage
motivated seller, in other words. Example?was only $205,000, but she wanted out, quickly,
I once picked up a house in Coral Gables, Florida,even more than she wanted to try to save her
from a man who needed to get rid of it as soonequity, although we told her we would give her
as possible as it was keeping him from relocatingsome money when we sold.
to Phoenix, Arizona to be near his mother whoseWe took over the house, as you saw; a 4
health was rapidly deteriorating.bedroom, 2 bath farm house with a 1 bed, 1 bath
He had his house under contract 3 months earlier,studio and garage. It is near skiing, Hunter
but his buyer did not qualify for the mortgage andMountain and White Lake, a wonderful summer
the deal fell through.resort.
He frantically tried to sell the house, lowering theWe are currently negotiating a deal that should
price twice, but could not come down any furthergive us $20-$25,000 cash, from which we will give
because he had refinanced the house to help histhe former owner $5,000.
mother pay for her treatment.We will then generate about $200/Mo positive
He felt trapped by his house. Fortunately, he sawcash flow by bumping up the rate on the
our ad on the Internet and contacted us.owner’s mortgage for a few years until
We arranged to take over the payments on histhe new owner refinances on a lease/purchase.
$175,000 mortgage. He wasn’t concernedWhy would he pay a higher interest rate, you
with the $18,000 equity; he realized that by theask? Because he is getting in with no bank
time he finished lowering the price to get a sale,qualifying! He is a Motivated Buyer!
he would have lost most of what was left toSo, you see it can be done. How can you do it?
realtor and closing costs anyway.Run ads saying that you will take over someone's
The key was that we were able to act quicklyhouse payments. When they contact you, sign a
without having to get a mortgage.contract with them to buy the house if you like it.
He gladly turned the deed over to me for noKeep it or find someone to buy your contract for
money. The mortgage stayed in his name. Wea finder’s fee. If you plan to keep it or sell
turned around and the next month took a $5,500on a lease purchase, you must put the house in a
finder's fee from a new buyer who was able toland trust to allow the sale. Check with your
refinance the mortgage and got most of hislawyer.
money back!With the slowdown in housing appreciation and the
In the New York deal, a young woman with twoimpending blowup of payment on millions of
children realized that she could not afford to keepinterest only mortgages over the next few
her house a year after it was awarded to her inyears, there should be more than enough of
her divorce.these trapped homeowners needing help for
She had struggled valiantly for that year,everyone!
unfortunately going through most of her savings