Foreclosure
My neighbour's house is being foreclosed by the county on Feb 2nd. He and his wife signed the deed to my LLC but , later backed down. The deed was resigned back to them, but they did not file it at the court house. How best can I flip this to other investors?. It is 4/2/2. Built in 1999. Owing about $110K as balance on the mortage and they have not paid their mortgage since Sept 03.
The mortage is about $1388.
I'd be careful here...you mentioned they signed the deed over to you and then you signed it back over to them but they didn't record it. I think at this point you are now responsible, but I could be wrong. In any case, you could fill out a quit claim deed to give it back to them. I digress....
Anyway, it sounds like they don't want to have you involved with the property. If that's the case then I'd just wish them good luck.
In an attempt to be complete, I'll try to answer your question. You asked how you could best flip this? First off you need the FMV of the property. They owe $110k and have over $6k in back payments. It sounds like there's not going to be alot of equity to work with here, which would then leave you with a sub2. However if the owners don't want to play then you're out of luck....
and if you're going to wholesale this deal you can pretty much forget about the bank taking a short sale.
Probably not what you wanted to hear, but I hope it helps.
- Ryan J. Schnabel