Heading For Trouble??
This is my first time at this site. I'm not a current investor. Just a current homeowner looking for the best possible route.
Two years ago my wife had to stop working due to a back injury. We've managed up till now. But all resources that I know of have been exhausted. From here on out it goes downhill. Some suggestions we got were "short sale" or "pre foreclosure" rather than complete foreclosure or bankruptcy. I'm hoping that with all the member knowledge here that someone could tell us the best route and the ramifications.
Thank You.
My 2 suggestions would be wholesaleing and subject-to both of which require no credit and a minimal amount of money. Wholesaleing is where you find deals and flip to other investors,you can make $2,000.00-$10,000.000 per deal. When you do subject-to deals you take over the property subject-to the owners financing. After you do this you can lease/option or rent-to-own,with your buyer refinancing within 3 years. In subject-to the seller deeds the property to you. Look at these forums further on this site.
It sounds like you're looking for a way out of your home and NOT a method of investing, right?
Do anything you can to avoid Foreclosure. If you're already recieved the Notice of Default, then you're already on the slippery slide on your way to foreclosure. If they foreclose, you loose your home and your credit and walk away with nothing. If you short sell it you still lose your house, but not your credit and you may walk away with a nominal amount.
Find someone who knows what they're doing and knows how to deal with the bank and the new buyer in your situation. Realtors will say they know. Most do not. If you sign with a realtor, sign a non-exclusive option with them. You may approach an agent and pay them $500 just to list it on the MLS.
You may be able to find someone to take over your payments in exchange for your house depending on how far behind you are and how much equity you have.
You might also contact the bank. Sometimes they'll do "cash for keys" and put money in your pocket if you deed them the house and walk away.
Has your situation improved? If your wife can work again or if you have another additional source of income that now allows you to make the payments once again then you should call the bank, explain what happened and negotiate a payment plan to bring the mortgage current.
For example: If you are $1000 behind and your payment is $750/mo they may say "ok, pay us $1000/mo for 4 months" Then you will be current and payments are back to $750/mo. Remember, banks would rather have you pay your mortgage than foreclose. They don't want your house - just your monthly check
Banks foreclose because they feel you can't or won't continue to pay them so they are trying to salvage as much as possible out of the deal.
If you don't have the resources available to dig out then hibby in the post above had some good suggestions. You could also try a FSBO at a bargain price but that's kind of like going with an investor. An investor will probably be able to close faster and deal with the bank effectively.
Make a list of all of your options and put them in front of you and review which one is the best deal for you.
Roger