How to execute the plan
My roomate owns this condo, she has a CURRENT mortgage of 35K.
But she is in foreclosure because she has not been paying the Association Fee. Her amount due is 8K.
I have the 8K and she has agreed to sing the deed over to me. if I just take over everything .
This condo is already schedule of and auction for the 15 of May according to the letter from the Court House.
She had a court date, but she did not go.
I am wondering if I can still do it or ? and what are the steps for me to do it ?
I have came up with this, would you review it and make any necessary changes?
#1 Talk to the Association's attorney to tell him that I have the money and that I will take over this property.
#2 Get a preliminary title search done ASAP
#3 Should I Get a inspection? Appraisal? (I live Here)
#4 Make an appoinment with a title company for the transaction.
I understand that the morgage will still be under her name, how should I go about changing that ?
THanks a lor for your advice.
Blanquitaqui
Blanquitaqui,
Glad to meet you.
The first thing I would like to know is the value of the property, this would help determine the best approach on how to take it over.
I see a few options that may help you but this would be determined by the value of the property.
Welcome on board this board , we here at TCI will see if we can help You.
John $Cash$ Locke
Thanks John for your replay.
Ok, the property is worth 62K
Blanca
Blanquitaqui,
Are you in a position to re-finance the property? You are on an extremely short leash on this one so time really is of the essense.
You can negotiate with the Attorney for the HOA Fees and see if there is any type of settlement you could work out, or maybe they will accept a settlement on whats owed, while explaining what you are trying to do to help your roomate.
The Attorney can stop the Court date if satisfactory arrangements are made. Do not pay anything however until you get the deed from your roomate if everything checks out.
You are right you will need to due your due diligence on this one, but find out two important items first. My thinking is if the Attorney will give you a figure to stop the auction, then you could take it over Subject To the existing mortgage, then at a later date refinance.
It concerns me that the HOA is so far past due and that maybe your roomate has not made the monthly payments to the lender, so this needs follow through. There are quite a few things to do but start with the Attorney and make sure the monthly payments are current.
Then we can go from there.
John $Cash$ Locke
John,
the attorney told my roomate that if she pays in ful she can still save the property from the action. THe amount past due is about 3k and the other 5k is for the attorney. Her mortgage is current.
I will start by talking to them work for a settlement. What Should I do next?
Blanca
Blanquitaqui,
If you can work it out with the Attorney, he will probably deal on the $5K, worth a try anyway.
When you are comfortable that he will call of the auction, but get it in writing whatever the deal is, then tell me what State you are in, so we can see what paperwork you need to take over the property using the Subject To method.
This will give you time if needed to find finanacing if required or just keep the deed in your name. Your roomate would still be on the loan, but you would be saving her from a foreclosure on her credit, no doubt she should thank you for this.
It looks like there is enough equity to make the $8K investment and pursue the deal.
John $Cash$ Locke
Hi John,
I talked to the Attorney's assistant. She said only my roommate can call and make arrangements. I had my roommate call and we will pay that before May 12th, as she told us. She will give us a letter saying that it will not go to action.
But I am pretty confuse about what I need to do now. I dont want to pay for it, without having the deed sing over to me, but I dont want the deed without know what cames with it. What should I do next?
thanks so much for your help, I really appreciated.
I live in West Palm Beach, Florida
Blanca