How to help this Seller - Subject To, Short Sale...

Question

I'm stumped on how to help a seller.

I got a lead from my direct mail marketing, and the seller's situation is as follows:

She has a single family house that she purchased in 2007.  Her husband lost his job and they haven't made a payment on their house since April 2012.  They are agreeable to me trying to do whatever to help.  They're at the point where they'll either do a deed in leu (sp?) or just lose it.

I'm guessing the ARV would be around $165,000 and I'd guess repairs would be in the $30,000.

They have a balance of  $138,681 on the Loan, and a past due amount of $43,643 for the missed payments (to bring it current)

I don't know how to help.  My first thought was that maybe I could try a Subject-To, but I don't know how to negotiate with the bank to deal with the past due amount.

I don't know anything about Short Sales, but the seller has tried it twice and it has stalled out on the 1yard line with Chase Bank, so I don't know that I could do any better.

Any advice would be very much appreciated.

Thanks.

Josh Stevens · Answer

@Bob Beeler

@Wayne Brooks

@Jeff McCaskey

Thanks guys.

The only other thing I can think of is buying the note at a discount from the bank.  I don't know whether Chase would even sell a specific note this way though.   Has anyone ever done that?  Unless someone tells me otherwise, I'm going to try it.  Not sure who to call, but I think I'll start with the account contacts.

Note Investing

Note Buying

@Dave Van Horn

Jeff McCaskey · Answer

@Josh Stevens Sounds like a short sale or a foreclosure. That's it. They are in pretty deep now. Otherwise you will be upside down in it and that is the wrong way to drive on this one way street!

Josh Stevens · Answer

Thanks.

Bob B. · Answer

WOW... no payments for almost 3 years...

I don't think you can help them.  I doubt the bank will forgive back payments and a short sale didn't work. No other options until Chase forecloses.

Sometimes you can't help someone no matter how bad you want to.

Wayne Brooks · Answer

There's generally no negotiating the balances on a sub 2.  Their best bet is a short sale, but we have no idea why the first two fell apart.