Short Sale Scenario
I need some advice. I just got a call from a lady who is facing foreclosure. She is 4 months behind on her mortgage and just received a letter from her bank (Wells Fargo) stating that they will start foreclosure proceedings in 60-90 days. Her monthly payments are $556.05 and she currently owes $56,168.28. She has not gotten an appraisal but I ran comps, and other 3/2 houses are selling for $90-100K. Obviously, this is a good deal because of the equity. This lady has no money and no place to live. I want to help her but also help myself in the process. I was thinking about reinstating the loan and putting some money in her pocket once it was sold. I even thought about doing a short sale but I'm not sure if the bank will go for that because it has so much equity. Any advice would be helpful.
Short sale will not work because there is equity. You may offer to bring loan current nd help her get a new place with the proceeds of the sale by making her a partner maybe. If the property is in disrepair you may have to relocate her first. She has some time still and you may even suggest she try to sell for full price for a month or two to see if she can get full price for her equity by herself. Get her to give a few dollars for your time and consulting work but not legal advice. Be careful not to give legal advice unless you are an attorney.
Good LUCK and Thank You
Hope this helps some
Ted Jr
I think I posted on this situatioin a short time ago. Dear Clair was my client and all worked out well. I suggest you use it as it falls directly in line with what you are attempting.
Watch your percentage of participation. If there is some way you can work it so that she gets a slightly larger share in the ultimate sale of property. It will make things very easy and from this will come others as she recommends your actions to friends.
Sounds great. Win/Win Lucius
Quote:
On 2004-01-03 16:06, Lufos wrote:
Watch your percentage of participation. If there is some way you can work it so that she gets a slightly larger share in the ultimate sale of property. It will make things very easy and from this will come others as she recommends your actions to friends.
Sounds great. Win/Win Lucius <IMG SRC="images/forum/smilies/icon_cool.gif">
Ahhhh, referrals...how sweet they are!