Co Worker In Pre-foreclosure.
Scenario:
Want to help help out co-worker whose family is in distress. Dad disabled for 2 years, mom and kids working low-paying jobs. House in pre-forclosure. need to move soon. FICO tanked.
FMv 160-160k Comps and appraisal agree. stable and growing area.
Owe 114k
behind 2,600
pymnt 660.00
no 2nd
I am thinking salvage payments, provide u-haul, rent deposits, Say 1k. Take a note for 12-14k due @ sale, recorded. Plan on making 2-4 more payments if needed. Mean while, list house with contingency of other options if not sold in 2-3 months. I want to keep the co-worker at arm's length.
Any suggestions?
Sounds like you've thought this one through.
catchup payment not to bad. If you have the funds, this one sounds like a winner.
I can manage.
I want to help and not come across as too predatory. On the other hand profit and protect myself if Murphy shows up. I figure once they are out for a month or 2, there won't be so much emotion involved.
If it sells I make $5-7, they get a nice chunk. If it sits vacant for a couple of months with no good prospects, I can say I tried, but need to get more aggressive to protect my investment. [ Edited by plumzany on Date 01/10/2004 ]
Be careful with the co-worker, though. Keep Murphy at bay! Everything else sounds good to me. Good luck.
Thanks for the replies. The co-worker is one of the kids and i know the parents, but not friends. Kind of like to keep it that way.
Any ideas on how to stucture something if it doesn't sell right away. Can a 3 -4 month realtor listing with a little higher fee be done. Then I'm thinking L/O.
But what happens to the note?
Marty
Now that I think about it, there is already a kind of 2nd on it from my note. Maybe i should just buy it at that point. Be in a little high @ 75-80%, hey, can't make millions on all of em. [ Edited by plumzany on Date 01/10/2004 ]
Hell at that price and LTV why not try and rent it for a year or more. If not as long as you price it right it should move within 12 days
make that 120 days
I want to know how they can have a $660 pmt. on a 114k balance. That must be without escrow and at about 5% interest.
If they really have no way to catch up on the payments, give them a 2nd for 5k and a couple at closing. Remember, they will get nothing if it goes to foreclosure.
After you sell the property, then go back to them with more money if you want. Be carefull that you are not overpromising from the begining. I like to give a fair offer, then if things work out great, do something nice for the folks. But until I sell the property, I am not worried that I have over promised and have to compromise my 5 or 10k that I need to make on the deal.
To tell the truth they haven't been completely honest with me and I have decided to walk away. They're just to emotionally wrapped up in the whole situation. Can't really blame them, but it's not constructive.