Is This A Deal?

I recieved a call from a homeowner of a 2 family house in foreclosure. Here are the stats:

the owner is behind: 50,000
owes bank: $230,000
appraisal: 329,000

Filed chapter 13 after losing job. Can make mortgage payment but the additional $700 payment above the mortgage to the trustee is killing him. The Sheriff sale is November 16th.

How can I help this guy? I'm thinking this is perfect for a short-sale and maybe a possible wholesale to another investor. I've inspected the property and it will take a couple thousand to update the house. What do you think?

Comments(4)

  • TheShortSalePro12th October, 2003

    If the homeowner is in Chapter 13...why is there a Sheriff's Sale? My guess is that he failed to maintain either the trustee payment, or the outside the plan payments.

    I'm confused by what you wrote. Is the $50,000 that he is 'behind' included in the amount that he owes the bank?

  • keedaah13th October, 2003

    Yes, the $50,000 is including in the amount. Any advice?

  • jorge12120th October, 2003

    Two thoughts here. First, the bank is protected in light of the FMV v. the amount owed so there is little motivation to participate in a short sale. Second, unless the property was abandoned by the trustee you will have to get permission from him/her to purchase the property as it remains in the bankruptcy estate.

  • schallerp21st October, 2003

    Actually if the house is involved in the ch13, then the attorney would need to get a release for the house so that the owner can sell. With the house being a part of ch13, it is tied up in the process.

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