What Would You Do....?
There is a family who's home is being foreclosed for the approximate lien of $260,000. The market value of this value is approxiately at $290,000 - $300,000 at most.
The father had been laid off and has undergone cataract surgery, and most likely, won't be able to make payments for many months to come. I thought about some type of creative terms for this family but the only option seems to be bankruptcy.
With Chapter 13 bankruptcy, they'll be able to postpone the foreclosure sale and will have time to find a buyer for the property. Besides this option, what other solutions can I offer to this struggling family?
Are they behind in payments yet?
They can contact the mortgage company and explain their dilemna. Some mortgage companies will rework the mortgage payments to accommodate family illness or hardship.
Sometimes the Mortgage companies will work witht the families, but you might want to act on their behalf. They will also offer the family options in some cases...Unless the family will be able to begin making payments on the property, they might have to start looking for something that is less a strain on their finances. Not always the answer they are looking for, but in their current situation, the best option. Good luck!
The family's house is up for auction on Jan. 7th. Not much time to do much, but in a situation like this, would it be profitable for me to have them sign a Subject To contract with me? I think that might be the best alternative instead of having them look down the barrel of a Chapter 13 Bankruptcy.
However, they were offered this option by a real estate agent who wanted them to declare bankruptcy and then listed their property for sale. This might be a bad move since there is no guarantee that their property will be sold even if the foreclosure sale date gets postponed.
I want to take over the mortgage payments, but then how will I fix up the property if the 2-family home is still occupied by them?