First Timer-Short Sale Deal?
Hello; I just recieved a call from a homeowner in bankrupty proceedings. Her house is in foreclosure and the sale is in a couple of weeks. 1st mortgage is at $232k with a 2nd @ $56k. The fmv of the property is approximately $290k with little or no repairs needed. They would like to stay in the house e they can qualify for a mortgage in two years. Maximim monthly payment they can afford is $1700. How do I proceed?
How can they pay for it when you own it if they couldn't pay for it when they owned it?
you dont.....not unless they want to move. I would first find out how much it would take to reinstate the loan and if I like the number I see, I might take it subject to.......but they would still have to move..
If the homeowners will only participate if they can remain as tenants... then I would walk on this. Presumably, even with an affordable Chapter 13(?) they couldn't afford the payment.
The mortgagee has sought and was granted a relief from automatic stay. The homeowners, in all likelihood would also have to have a dismissal from their bankruptcy before the mortgagee would entertain anything less than a full payoff.
That would be the second mortgagee, since the first would have no incentive to consider anything less than full payoff.
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Thanks for the info; I think I'll go on to the next!
Sounds like a deal I work with all the time. You need to find a friend of the owners who can qualify for a loan in the $240 range. Offer the 2nd pennies on the dollar, fully payoff the first and get permission from the bankruptcy court. The friend buys the property and leases it back to them. I dont have an amortization schedule handy but I think the proposed payment is feasible.
The cardinal rule of forclosures is NEVER let the seller stay in the house. She is in bankruptcy and forclosure but she will qualify for a morgage w/i two years? I don't think so. If she can't make the morgage payment now how will she pay the rent in the future?
I've put together almost a dozen short sales and leasebacks with the Homeowner's friend or family member.. since they are less about money, more about family and friendship, and less likely to evict their friend....
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