Possible Deal Here, Or Am I Crazy? How Would You Do It?
I spoke to a gguy who is 3 months behind on his payments (1300 on the 1st & 300 on the 2nd per month).
Home is worth 135-140 and he owes 134k.
Filing bankruptcy because he cant make the payments. He thinks since he is filing BK the mortgage companies will look to his wife [soon to be ex] for the money every month.
I know nothing about BK so i was wondering if you see a possible deal in this.
I don think it will rent for more than $1400 so i asked him if he could pay $200 a month towards his 2nd if the tenant paid $1400 and he said he couldnt but his wife may be able to.
I was thinking forebearance agreement on the 1st mortgage, short sale on the 2nd, contingent upon us finding a T/B?
This is probably the totally wrong way to go though right?
3% of 140 is only $4200, so if we do get a tenant to pay that much, the 2nd would have to take less than that to get paid off. Then 114k would be owed on a 140k home [81% of FMV]
The possible ways are many i think, what do you see when you look at this scenario?
Mike
update:
He owes 114 onthe 1st and 20k on the 2nd
What is it you would like to do buy it or flip it or something else?
Mike
[ Edited by MrMike on Date 01/22/2004 ]