I was contacted just recently by a seller whose home has the following challenges:
- In pre-foreclosure
- Has not paid the mortgage in 2 years
- Rented the property and was not eligible for refinance as a homeowner
- Has an adjustable rate mortgage
- Taxes have been paid by the mortgage company for the past 2 years
Is there any hope for this property?
An idea of the equity would be helpful.
There is none, really. The comps have the property close to 107K. The mortgage is at 103K. She has fees in excess of $10,000 the bank has charged based on court filings.
Bankruptcy for the home owner will stop the foreclosure. Then she can sell it to you. Contact the banks Loss Migrator and see if you can strike up a deal. Check with the states foreclosure process to see how much time the home owner has to redeem the property after foreclosure. Check into a short sale with the bank.
7574057336 | http://msedlacek.kw.com
Do a short sale and double close.
Determine the amount an investor would pay for the property as is in 1 to 3 months. Factor in your wholesale fee and fees associated with double closing. Get the homeowner to sign off on your sales contract and enter into a short sale with the lender. Explain the advances to the homeowner and explain the documents they will have to provide to the bank. If the lender requires the property to be listed. Find an agent, list it, and may sure the homeowner leaves the property as is for the bpo.
If you are a potential agent on this, and this is your "first rodeo" on a short sale, i'd engage an experienced short sale agent to assist you or share the listing. You risk wasting your time and the time of the seller if you aren't experienced in short sales as an agent and based on your questions, i'm guessing you aren't experienced in short sales.
and @Mike, not sure if it's YOUR post (the format of the postings on this site changed so, it's hard to follow who posted what, at least for my screen) but, whoever posted that BK stops it, isn't entirely correct. It stalls it yes, but it doesn't stop it. If they aren't going to start paying on it and get it current, the lender will move for relief and based on the numbers the OP stated, will get relief and continue with the foreclosure so, why spend $2M filing BK and further destroy credit, to stall a foreclosure for 60 days that's gonna happen anyway.
Thanks all. Yes , I have no experience in short sales and will probably pass this on to someone who is. She is not living in the house and has since moved into another home. She is hoping for the foreclosure just to get rid of it.
Thanks again all.
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