Received a call just now and need some insight.
Owner has not paid in 4 1/2 months. renter stopped paying rent. He received a letter from bank that he has 50 days to respond. Feb 12 served a letter of default.
He owes 213k recent sales comps are 190 - 200k (i have not seen the house and he has not been there for a few months now, so condition is unkown).
Mortgage payment is 1800. rent was 1800. He was breaking even/ losing . He is ready to walk away from the property.
Thoughts, suggestions, advice?
Just found out that it is in pre-foreclosure
Since the math doesn't add up, my suggestion is to move on to the next deal.
Why not ask the owner to call his bank's loss mitigation dept and see if they would do a short sale? It's a long shot depending upon factors that include the owner's fiancial profile, but a bank may want to do a SS vs foreclosure.
If the bank will accept a SS have him list it with an agent and make an offer. You will potentially be competing against other buyers but if you are the first offer it may fly.
@ Corey, not bad advice on the surface but again, why? The math doesn't add up. They aren't going to sell it to him for less than fair market value and if he has to buy it at fair market value, why doesn't he just go buy an open market property and save the headache and hastle of a short sale?
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