How Can I Help With This One?
I got a call from a woman who is in preforclosure and goes to auction in 1 month.
Stats about the situation:
-She's behind about 9k
-There's about 15k equity but she can't get a home equity loan because her credit is terrible.
-No other liens against house
I think it would be hard to short this one because of the equity but I haven't done one of those yet. She really wants to keep the house. Would a lease/option make sense (I buy the house, lease/option it back to her-if she faults I evict), but then I'd need to do a short sale to get the lease/rent $ low enough to be competitive. I guess I could turn her over to a hard money lender maybe? Or, could I be the hard money lender, failure for her to pay means I get the house (get an attorney to draft the terms).
She said she will be doubling her income in the next couple months (I need more details on this).
Can you wise people give me a hand with this one?
I appreciate it!
Thanks,
Paola
I have always been told to never buy an owner occupied house where you lease back to the seller especially in default. Find another deal with some good equity
Good LUCK and HAPPY HOLIDAYS
Hope this helps some
Ted Jr
Forget about a lease option with the owner -- if the owner can't pay the bank, can you expect them to pay you? I don't think so.
The only way that I think this can work is if you get the deed. Try to short sale it and pay her whatever equity you agree to pay her WHEN and only when she she moves out. If she doesn't want to give you the deed and doesn't want to move out, move on.
Best of luck!