Will My Idea Work To Save My Home?
Ok, here is my plan.
First I want to short sale my own house. Than I want to stay in my house by having a friend or investor purchase the house. I would stay in the house and become a renter.
Question
Is this possible to do without defrauding the bank.
I would like to get a deal with the purchaser of the house to have them get an equity loan of 10,000. I would use 5,000 to fix up the house and the buyer would keep the other 5,000 for himself.
Than in about 1 year I would like to sell the house myself and keep the all but 2,000 of the difference of what the house is sold for and what is owed. Example if the house sells for 120,000 and 100,000 is owed to the bank. I would make 18,000 from the sale.
Can I get an investor to go for this?
They would make 7,000 plus the tax write off.
How can I set up a contract so I won’t get burned on the deal by the buyer?
Any ideas how I could best work this plan?
Thanks for your help
I thought you quit drinking...?
I had job problems that are fixed now. Also my mortgage went up 50% and I cant afford that big a jump. I can afford 1000 a month but not 1500 that the payments went to.
Ok creative people how can I do this and how could you improve the deal to work out better for everyone.
Thanks for your help
Russ
First of all, no investor would do that for just $7k and most (all your quality investors) would not ever do that deal. It is not worth it to fraud banks for one deal when there are too many legit deals.
Why did the payment jump so much? Are you behind and they tacted on the back pay? Do you have a short in escrow?
Call the Bank!!!!! Banks are willing to do a lot of things to not get a foreclosure. I have known of people who called their bank and said they could afford $X a month, which is less say $500 below the interest payment. The bank was willing to accept their $X a month and tack on the $500 to the principal every month. Call the bank and try to work things out.
The non owner occupancy status may be a monkey wrench ... best to contact the lender, in writing, early on and request ss criteria.
With a short sale, if the borrower owns multiple properties, will they want them to give up some equity in another house that is not being shorted? I know part of the package is to find out what assets the borrower has.
The house that the owner lives in has no equity. Has anyone had this scenario before?
Yeah, it never hurts to try. You never know!! Thanks!
How much has market fallen in the area? If significantly then they might be amenable to a shortsale.