Help Need Help - Friends Home Is Being Foreclosed On Trying To Help Her- Need Advice Quick!
I Have a friend that came to me and told me she received a foreclosure notice on 2-4-05 , and wanted to know if there was anyway I could give her some advice on what to do.
I questioned her about the amount she owed, if there was a second , or any other judgements on property. Her answer was NO to all of the questions.
She owes 109k , house needs about 10k in repairs, ARV 142k. She does not want to keep the house, but would like to save her credit.
I would like to get enought of the repairs done to get it in condition for the retail market, and do a FSBO. I have people that can do the repairs if I pay for materials, and they would wait for labor payment after house sales. She has no money for the repairs. I have enought to pay for the repairs.
I would split the profit with her . She would get 25% , and I would get 75% , this would include me paying my workers and the repair money for the materials for the repairs.
I need advice from some of you if you think this would be a good deal to do , or should I just opt to do a short sale. I am trying to help her save her credit from a foreclosure , and give her a little profit from it.
If I do the repairs and we put it up for retail sale, How should I structure the contract between me and her so I will be able to get paid at closing my percentage.
I thought about having her quick claim me on the deed , so I would show as part owner at the closing, and be paid my share. Any advice would be appreciated. I want to get started on this right away.
Please Help Me !!!!!!!!!! Please Help !!!!!!!!!! Please Help !!!!!!!!
:-o
Just do the deal yourself and skip the 75/25 split crap. Find out how much her bills are. Does paying her mort and bills leave you, the risk taker, enough incentive? She should be ecstatic that somoen might step up and just make the whole thing go away AND walk away debt free.
[addsig]
Thanks Ron for your reply.
I am not sure how much her bills will total, but I will ask her. I am not sure I have enought cash to pay her bills and pay for the repairs. Or do u mean pay her bills off ( according to how much they total ) once the property is sold.
When you say , do the deal myself, or you saying Go for a Short Sale ? , and then get home ready and flip it ?.