<20% equity on preforeclosure

5 Replies

I'm working with an owner who's property will go to foreclosure in September. He has only about 17% equity in the house. Any suggestions? He may allow someone to take over payments until the house is sold. Reinstatement is about $70K. Is this something an investor could work with or is this a short sale?

Originally posted by @Stephanie York :

I'm working with an owner who's property will go to foreclosure in September. He has only about 17% equity in the house. Any suggestions? He may allow someone to take over payments until the house is sold. Reinstatement is about $70K. Is this something an investor could work with or is this a short sale?

Assuming that 17% equity figure is after that $70k, refinance it into your name. Rate @ 85% LTV on an SFR investment property will be crap, and there will be PMI, but it'll be a lot cheaper than hard money. Refinance it from "foot in the door" financing to permanent financing once you improve it a bit and force the appreciation.

So their payoff is 277K ( UPB + Arrearage ) and you are saying the home is worth about 324K AS-IS?

Seems like an investor could maybe turn 70 into 30k? Could be worth it to someone out there. 

May want to consider getting this on the market to find an owner occupant too.