A Little More Help, Please!!
I posted the other day about my sister's house going into forclosure....she is not interested in saving it, although there is decent equity in it....I am negotiating with the mort. co. My sister is going to deed it over to me. Here is the problem...a few weeks ago we had a huge hail storm...I had an adjustor to the house....it needs a new roof, gutters and screens....the insurance co. is going to write the check to both my sister and the mort. co. I will wait until after the payoff before sending the check to them for endorsement. Is there any way to use this in my negotiating in my favor to try to get the payoff closer to principal balance (she has 10 months arrears)?????
JackDevlin -
Are you attempting to do a shortsale or a forbearance? Need more clarification to help you better. Also, if you are attempting a shortsale, the repairs aren't a problem..actually the repairs are helping you by bringing down the value of the house. Use the repairs to your advantage in negotiating with the Lender to get a better sales price. Hope this helps and good luck!!
Not sure what a forbearance is??? I am not short selling...not enough time and I am a brother and that is not allowed in this state. I am just trying to pay off the loan...I want to try to negotiate a pay off of the principal balance instead of having to pay for the attorney fees, late fees and acrued intrest over the last 10 months....or a potion of those fees.
it sounds like you want to do a short sale. SO, the person who asked you that question in an earlier post was correct. You being her brother, uncle or whatever has nothing to do with it. You are saying "I want you to take a hit mister lender". That is a short sale as far as I know. My question to you is "How are you going to get them to take the hit"? Do you have comps and any other valuable data that would make them consider a 'short sale"? If you are planning on keeping the existing financing in place, you wont get a short unless you cash out of the deal by getting financing yourself or in the name of another investor.
Good luck!!
The mortgagee will want that insurance check.... better factor into your Offer the amount of the check ...
and include the amount of the check as part of your payment to them... indicating that part of the purchase price will be the endorsement of the check in favor of the mortgagee.
Otherwise, it's doubtful you'll be able to cash it.
If there is equity the bank will not take less than the payoff. Why not just get deed from sister, buy subject to the loan, bring it current, send check to lender and have the repairs done and sell the house for a profit. If there is not enough to make a profit then do not do the deal unless you just want a rent house. If you need help with the numbers we will be glad to help
Good LUCK and HAPPY HOLIDAYS
Hope this helps some
Ted Jr