Is This A Short Sale Candidate? Need Help!!!
Hello everyone,
This site is so great. I want to thank everyone for their wonderful input to this site. I just received my first call from some bandit signs that I put out. Wow it was cool. LOL Here is the sellers situation. Is this a short sale candidate or not? What would you do? Here is the situation. The seller is 3 months behind on his payments. The payments are 1350 a month. He is currently in Chapter 13 BK and he said will probably be forced into Chapter 7 BK. His house is worth approx. 160,000 to 165,000 and he has a first mortgage of approx. 127,000 to 130,000 and a second mortgage of 17,000 to 18,000 dollars. So he owes approx 150,000 on this home. The house was built in 1999 and seller says there are no repairs needed. Any thoughts on what to do? I would greatly appreciate it. Thank you everyone for your input. Can I help this guy out? I am very unfamiliar with bankruptcy and the workings of it. Can he sell his house in BK? In both Chapter 13 or 7? Thanks 
Sure but you will have to get the notes discounted in order to make it work.
The second should go way down, maybe to a grand or two as they will be wiped out when the first forecloses. The first might discount because it will cost them at least 10 K to go through this and more like 12 at a minimum. So they migght take it down a notch as well.
You'll have to get the lenders and the court to agree.
A think I have been trying to do, is buy the note from the 1st, and hold it until forclosure.
This way you could get the property for 127 or sell it at auction.
at 127 there is equity available.
this assumes the place isn't trashed and needs 50K of repairs.
"Can he sell his house in BK?"
Learn to crawl, walk, then run. Can this be done? Mechanically, maybe.
Realistically, by a novice? Probably not.
Shorts in general are like a jigsaw puzzle. Shorts when compounded by BNK are like a puzze of a polar bear in a snowstorm.
[addsig]
Thanks Shortsale pro
I am a novice to short sales yes. I want to get into this side of investing and am very motivated to do so. If I took this one on then it would be a good learning experience I know. Then all the other ones here after would be a lot easier based on this one. Thanks for the comment though. I appreciate it.