I received a phone call from a sweet old lady who for selfless family reasons left her home behind and moved a whole state away. In order to take care of her grandson she needed to stop paying on her home in order to pay her rent, she ended up filing for bankruptcy etc, etc. So, I originally was informed the bankruptcy cleared her of mortgage and the house was hers. Apparently, her lawyer was wrong for telling her this. She and I spoke with the loan servicing company and she is behind $53k and has a payoff of 120k or so. The house is worth 130k. She is starting the HAMP process and she is planning on giving me a lease option when it is complete, I will then sublease the house creating a win, win situation.
My question to the BP community,
Is the HAMP the best option or would conducting a short sale be better? Additionally, I don't know any real estate agents to refer her to and from my understanding that is about all I could do if the short sale path was her best option. I want to make sure she is taken care of, and of course make a few bucks myself. I don't want to simple tell her to find a real estate agent and ask about a short sale option.
Is there something else that I am unaware of that could create a win, win scenario?
Thanks everyone for any assistance.
If it's worth $130M and the payoff is $120M, doesn't appear to be a short sale. With 6% in commission and 2,300 left over in closing costs, it could be a full payoff so, i'd not spend all my energy on the short sale aspect.
The only one that stands to gain in this is you, (to make a few bucks for yourself) and having her follow through with HAMP then doing a lease option with you, could put her into trouble with the Feds if she lies about her intent as it relates to the property and occupancy. You have to occupy the home and intend to occupy the home for HAMP (Among other eligibility requirements). Not sure i'd spend all of my energy on this option either.
I don't know a bankruptcy lawyer alive that would be dumb enough to think a bankruptcy discharge conveys free and clear title to the borrower. I'm thinking she was mistaken and/or you, and not the attorney.
At the end of the day, she has no contractual liability for the property any longer so, walking away from it (As she has apparently done) seems to be the path of least resistance for her and, in her best interests if not yours. You on the other hand and looking for an angle to make some money and while there is nothing wrong with that, let's call it what it is instead of what you are saying it is.
Thanks for the advice Ron, I believe I said it is nothing more than what it is...a win,win means we both make money.
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