Help Fast, Aution On 3/9/04
By word of mouth I got a call, just got of the phone with the seller.
Divorce situation. They've owned the house 4 years.
Purchase price: 156K
Final Judgement: 165K (Mtg. Balance 138K)
FMV 170K
Goes to courthouse 3/9/04 (10 days)
Never dealt with homowner in distress before, and want to help them (friend of a friend).
CAN I HELP THEM?? Any suggestions on what can be done. I guess a Short Sale is out of the questionon this late in the game?
Help. Thanks
Sam
Oh yeah,
They're loan interest is 13%
They are 14 months behind in payments. (1400/mo x 14months = like 20K).
If that helps. LOL
Sam
If the balance is138K and they are20K in arrears that doesn't leave much room to work with. I would say take the property subject to however; with a 13% note who would want to?
I would try and work with the owner and create some equity for "you" in the property through a short sale. Then if you make some $4 you could help them move by paying first couple months rent etc on new house. YOu are prohibited by law from paying them anything off the sale. YOu could pay for them cleaning etc.
Buy "the short sale primer" ebook addition and do your first deal.
Randall
You mention a purchase price of 156k and a mortgage balance of 138k. How many mortgage liens? 1st, 2nd, 3rd etc.
The difference between 165k and 138k I assume is legal fees and penalties is this correct?
Nathan
The diff of 165 and 138 is legal fees, etc.. I agree, with you that I could make the payments up and take it sub to, but it's way too tight, and I don't want a 13% note that I have to worry about justifying to a new buyer.
They don't want any money out of the deal. So I'm not worried about paying them. Just keeping Foreclosure off their record
My concern is this:
Is there enough time to do a SS? Especially for someone who's never done one before...likewise...Can the auction date be pushed back? Is that possible?
Thanks for the fast response.
Sam