Sub-2 Possible Short-Sale
I took a property Sub-2 last year, but due to loss of income I have not been able to keep up the payments. Between the amount of money put into repairs and then the housing prices continuing to diminish, I need some advice on how to do a short-sale on this Sub-2 property without having to put the previous owner back on title and still get my repair money back out of this? Someone mentioned a mechanics lien, but any information from someone with experience -- is greatly appreciated!!!
consultant810,
Glad to meet you.
Your first priority should be to the house owners whose name is still on the mortgage, instead of trying to save yourself looking for evasive ways that could wind up with you in front of a Judge.
Bite the bullet, show the home owner that creative investors have the sellers concerns first and foremost in our minds when adverse conditions come up..
John $Cash$ Locke
[addsig]
mndave,
This investor is behind in payments, so if the sellers credit was not shot before, it is now.
The housing market has devalued so the house is apparently not worth what is owed. or extremely difficult to sell even on a Lease/Option or Contract for Deed.
Maybe a little one on one with the sellers, before the situation got to the point it is, would have been prudent on this investors part. As far as creative ideas, looks like the horse has left the barn, so locking the gate now will do very little.
The short sale idea might work to help the seller, only this investor will not receive his repair money, which seems his major concern at this time.
John $Cash$ Locke
[addsig]
Take the loss. Give the property back to the seller. Forget about your repair losses.
Any seller with a 3rd grade education, knows a sub-2 is not a sell, and they are still responsible for the mortgage.
if the owners let it get behind, then thats just 2 bad. Your deal didnt work out. Hopefully they got a nice down payment for their troubles.
But it really is their long-term problem, not yours.
Chris,
Society would be better off if we still had these values. Some day I hope it will change. Have a great day.
J
Here! Here!
This old dog likes to hear that keeping your word still has a big part in CREI!
Jim
mndave,
This issue is not just about Sub 2 deals, I would recommend if you want to start a thread, ask how all investors are surviving the storm.
John $Cash$ Locke
[addsig]
This issue is not just about Sub To deals, I would recommend if you want to start a thread, ask how all investors are surviving the storm.
John $Cash$ Locke
------------------------------------------------------------------------------
An excellent idea, especially with the new laws out about investors with 4 or more properties are now unable to get mortgages underwritten from Fannie
How is a subject to differenct from a lease option?
They are completely different.
[addsig]