Is There Enough Time To Help This Person?!
I'm in Los Angeles, California.
I have a deal that I'm working on right now.
The house is going to be sold at the court house on the 13th of April.
This guy just bought his house exactly a year ago.
FMV 500-525K
1st: 500K (foreclosing)
2nd: 150K
He's late on his taxes and payments by about 30K.
Questions:
1. Is there enough time to do a short sale?
2. Can I still discount the 2nd mortgage ( 1st and 2nd were recorded on the same day)
3. If he files a chapter 13 is it going to help me ( give me more time ) to do a short sale?
4. Last question : What would you do to help this guy?
I don't think that there is enough time to effectuate a short sale. Why the rapid depreciation? Something sounds amiss here, perhaps origination fraud.
Initially, the Chapter 13 would preclude you from entering into any agreement with the Seller. You would need bankruptcy trustee permission... and I'll bet that the second mortgagee will raise a few questions...
[addsig]
He bought this house a year ago for $650K. I check all the comps and houses in a area don't sell for more than 550-600. Although he said that he was trying to sell it with a realtor for 730K and had a buyer but they couldn't qualify for a loan in a very last minute.
I spoke to the owner yesterday and he said that he's done some improvements(build a little guest house on the back) and that's the reason why he was trying to sell for 730K or 720K( he changed his story at the end of the conversation)
Anyhow, looks like I don't have a deal after all, but it wasa good practice. The question that I still have is after he files chapter 13, how much time does it give me to do any kind of a deal?
Thanks a lot for the great info
be careful somthing sounds a little fishy
If there's a reorganization,Chapter 13, he has to be able to afford the mortgage payments.
Putting that aside, I don't see that there's much of a deal here for you.