How Can I Make This Deal Work?
My cousin can't make payments on her new husband house and her own house. His is scheduled for foreclosure in december. Here are the details:
[LIST]Loan amt: $105,385
schedualed payment: $3096
Value: somewhere between $120k and $150k but I think about $140k
Rate: 9.5% (he has a bankruptcy on his record)
Needs about $5k in repairs.[LIST]
My dad has a HELOCof about $85k which obviously isn't enough to buy it from them (they want $120k)
I thought we might beable to assume the loan and refinance it then use the HELOC to do the repairs and talk them down a little on what they get.
Another idea was to keep it in their name and pay off the forclosure yada yada and do the repairs with the HELOC then sell it in their name (to avoid all the closing costs and capital gains tax) is their anything unethical/illeagal about that? is it safe to keep it in their name? what sort of contract would we use? Can they quit claim the property to us while they still have a mortgage? Thanks for your advice.
Josh
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"if you are going to be in Real Estate you better know how to fix a broken toilet"
The problem here is going to be that you are dealing with family. Sounds to me that they are motivated sellers who just don't know it yet. The sale is in December?!? Whatever equity they think they have is gone in a month, work with the bank on a short sale on this one. My two cents.
Andy
I agree completely. Short sale is the way to go. Present it to them as you are helping them out. If the property is sold at foreclosure his credit will be trashed again. He is going to lose his percieved equity anyway so his best option is to get out of it with no hit on his credit.
GL
So how do I do a short sale?
if you haven't done one in the past, go to the short sales forum, read up.
However, you still will have a hell of a time. I would contact a local inverstor and get his / her help quickly.