Pre-foreclosure What To Do?
I just hired a guy who had been unemployed for a couple of months and is getting ready to lose his house and his vehicle, I am not a big fan of loaning money, been burnt a couple of times, so he is about $2,100 behind in his house payments and has until the 4th of next month before they begin foreclosing if that amount is not paid. The house will appraise around $115,000 and he owes $89,000 so he has some equity in the home, He pays about $825 a month on the mortgage. My brother lives right next door and says most of the homes in the area sell in less than 30 days. My thoughts are, I do not want to buy the house, I would rather just get this guy caught up on his mortgage and sell the place and make a little bit of money. He cannot afford the house and his truck and his new baby, He just wants out with his credit somewhat intact. How do I get in and make sure when it is sold I get my money back plus a little extra?
In your situation, I would just put a house under contract and find an investor who whould take over. Let's say you put it under contract for $90K and re-assign your contract to investor for $95K.