Attorney Is Advising The Homeowner To Let The House Foreclose?!!
I have a seller in pre-forelcosure that asked me to contact their bankruptcy attorney (which was filed 2 yrs ago).. He then starts drilling me as to how I was "helping" the client. He then says that his advise to the homeowner is to "lose the house to forelcosure" instead of working with an investor on a short sale. I asked him why would he advise such a thing? His response:
"The fact that she has previously filed bankruptcy, and that she's received a lis pendens, and now she can't afford the house, she might as well let the bank take it, if she's not going to get anything (monetary) out of it. A lender won't see a sheriff sale on a home any differently than they do a foreclosure filing (previously stopped by the bankruptcy)."
She doesn't have any equity and it needs approx 30k of work...
Anyway, what do you think about the comments from the attorney.. That from a lender's point of view, there's no difference of receiving a foreclosure filing (stopped previously by bankruptcy) as opposed to losing a home to sheriff sale?
Thanks in advance...
AJB
:-?
if she has no equity and it needs $30k in work, why are you chasing this deal?
from the attn. point of view you are not helping his client . if they have filed b/r any equity or profit {and you said there was none } from the sell would go to the b/r court to pay creditors and that selling will not help there credit and he is correct there is nothing for his client to gain........kenmax
Is the lack of equity due to the mortgage or due to other leins on the property?
Posts: 76
Joined on: 08/28/2003
Christiana, TN
Posted: 14:45 on 04-08-2004
from the attn. point of view you are not helping his client . if they have filed b/r any equity or profit {and you said there was none } from the sell would go to the b/r court to pay creditors and that selling will not help there credit and he is correct there is nothing for his client to gain........kenmax
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AJB writes:
Ok I here you on that but what does she have to lose by selling .. and is it really no different to potientially future creditors that she sells before the sherriff sale or she loses it.
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Posts: 3
Joined on: 11/21/2003
Hewitt, TX
Posted: 15:01 on 04-08-2004
Is the lack of equity due to the mortgage or due to other leins on the property?
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AJB writes:
they owe 125k on the principle (mortgage co wants 140k to satisfy)... but there's extensive damage to the interior..
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Why am I chasing this deal if there's no equity:
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AJB writes:
Well, I figured that it was a good candidate for a short sale. If so, I have rehabbers that would pick it up easy....
Regards...
AJB
the owner has nothing to lose by selling but more important to the owner they have nothing to gain. more than likely they are so depressed from the whole process that they just don't care what happens to the house and selling it would only bring more heartache. i know i've been there. 11 yrs. ago my first wife died of cancer and i went though the same thing. the creditors don't care how the loss happen. to them a loss is a loss......ggod luck.....kenmax