Going Into Foreclosure, Now Filing Bankruptcy
I have someone that contacted me regarding his home. He had overpaid by 100K according to the new appraisal and in now filing bankruptcy.. How do I continue with the short sale?
HE HAD OVERPAID BY 100K?? PLEASE CLARIFY THIS
Unless he still has substantial equity, walk away from this one...there are many more fish in the sea.
He had purchased the house for 260K last year and now owes 253K on it. He had appraised recently and it came back at 130K. The group that he bought the house from overcharged him and they are being sued for 10 million by Wells Fargo and a few other lenders. Is there any hope in this one?
Suggest you might see if there's anybody "home" at note holder's office and see if they'd be interested in a short sale of their note.
Could just be that their lawyer would really welcome a shot of cash & you just might end up with the note & the RE for a LOT less than what this sucker paid.
Thinking further, I"d suggest you send a letter to their lawsuit lawyer, whose name & address you can quickly find in the court papers re their big lawsuit, telling him/her that your "group" might be interested in making them an offer for a LOT of their notes.
You might just find this to be a potential goldmine with a VERY motivated note seller.
Just thinking out loud here-- not a specific plan yet. If, as you say this guy was defrauded into overpaying for the house somehow (not entirely sure how this could have happened-- the original appraisers were in on the scam?) then he may have recourse against one or more people for the fraud. You maybe able to buy his lawsuit, participate by paying the legal fees and in return get a piece of whatever settlement is reached.
You say there were a number of these people-- (otherwise you're nowhere near $10 million) its worth finding out a little more about the circumstances and seeing where it goes.
I enjoy buying lawsuits. Lots of potential for profit and most people run like He***.