Help On Preforeclosure
here is the situation. i have a motivated seller who is facing foreclosure on a 3 bed 1.5 bath, 1175sf, baseboard heating, window unit airconditioning, brick single family ranch on approx 1 acre of land. the bank told her she has about 5-6mths to bring the loan and penalties current before the auction (im in SC a mortgage state). the house is currently listed with a realtor who has held the listing for 3 mths bringing in only 1 person to view the house and zero offers to buy. the house is listed for $79,900 (seller guesstimates fmv to be 78-80k) $3000 owed in back payments and penalties, and about $73,000 owed on the loan (i dont recall if that includes the 3k in back payments and penalties), there is no second. monthly PITI $564. The seller also stated she would like to satisfy the loan and walk with 1st months rent and security deposit. (she rates it a 7 on a scale of 1-10 for overall condition). seller states no major repairs needed except the septic tank needs to be pumped.
her hardships include difficulty finding full-time work, and i also gathered her husband is not employed at this time.
i asked her what she would do if she couldnt sell. she responded, her 1st step was to fill out forbearance paperwork that the bank offered to rectify the loan, but she said she didnt think it would pan out. and if she couldnt sell, they have discussed bankruptcy. so i know i have a motivated one on my hands.
here are some of my questions to the board.... how do you handle the realtor,work with her or ask the seller to end the listing? as far as structuring a deal, im thinking two routes to go on this one, 1) a short sell with the lender, cause the seller has mentioned filing bankruptcy, and the lack of equity 2) buying subject to, using a lease option or owner financing to sell in either scenario. with the low PITI of $564 im not imagining any difficulties accomplishing this and getting cashflow.
thats all i can think of now, im looking for answers to the above questions and advice on how to put this thing together.
thanks for the input,
eric
A short sale would be your best bet i belive for this one. Because there is basically no equity, and the house needs repairs, hopefully you can pick it up for 55-60k
[addsig]
Roger that BirdDog One!!
C- :-o