Ponchatoula, LA · Member since 2017 · 37 posts · 11 votes
I was contacted by a friend to help keep him out of foreclosure and I am not sure where to go from here. Here's the facts:
3/2 1900 sqft
highly sought after area, it would rent right away for $1850
Purchased 2 years ago so has very little equity
Interest rate is 4.1%
He hasn't made payments since August
Filed for bankruptcy last year
Willing to do a bond for deed and I would assume the loan
Should I even take on this property knowing that it has no equity? Is there a way I can contact his bank and get a reduced amount to get the loan up to date?
Update: I just looked up comps. He bought the house for 197,900 in 2014. A house down the street, with the exact same specs just sold for 215,000 in January.
Would the property cash flow if you assumed the loan? How much is the back due payments?
Unless if it cash flowed and the reinstatement was very low, I'd likely go for purchasing it below fair market value 100% of the time if I wanted the property and had the means to acquire it.