Under Water Deal - How should I help her?

[Account Closed]

I have a lady that would like to sell her home but she's underwater. 

- Home value 138,000 

- Mortgage is 210,000 

- She has a tenant in the home 

- Mortgage is late and tenant pays on time

- The house is in Waldorf Maryland

- Eager to sell

What would you do?  I have an idea but I wanted to hear your opinion. 

Thanks BP!!

[Jeff Copeland]

It depends on how far into default she is - if they've initiated foreclosure proceedings it might be too late.

And I doubt they will modify the loan that much (they normally just lower the interest rate, refinance the delinquent amount, and try to get the payments down to a manageable level).

Even if they did modify it down to the current value (which is highly unlikely) - they certainly aren't going to modify it to the point where she has equity - then you'd just be hoping for appreciation during your option term (I assume?). Even at a whopping 10% annual appreciation, you'd be looking at under $29k, less your option fee, less repairs, less holding, commission, & closing costs. 

Sounds like a ton of work, for an unlikely outcome, for an uncertain payday, two years from now.