Updated over 15 years ago on . Most recent reply
The other side of Foreclosure
I have a friend who sold a property and now has to foreclose. This is a commercial property in Oakland, CA. Does anyone have an idea of what it would cost to have an attorney foreclose on the property? My friend is in bad shape financially because the people have stopped paying their mortgage. It seems like there is still value in the property if it were resold.
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#3 Real Estate Deal Analysis & Advice Contributor
- Rental Property Investor
- Mercer Island, WA
Has your friend tried just asking for a deed-in-lieu? He agrees to take a deed to the property in exchange for forgiving the debt. That's by far the fastest and cheapest way to handle this situation. It won't be free, since there is some paperwork to be filed, but it will be far cheaper and FAR, FAR faster than a foreclosure.
To do a foreclosure will take several months. Don't know that it will cost $10,000, but it will very likely cost several grand. I've looked at a number of the residential foreclosure opening bids in Denver county. Its not unusual to see $10,000 in fees tacked onto the amount due on a $150K residential mortgage.
The only way to really find out is to speak with an attorney. You need an attorney who specializes in this sort of action. Unless your lawyer does this, ask for a recommendation. Call around. Most should be willing to at least speak with you on the phone for a few minutes to discuss what might happen and what it might cost. Most should be willing to do an in-person meeting to discuss the situation. At worst, you'll spend an hour's time and a few hundred.
Unfortunately, this will not be free. Unless your friend is willing to just walk away, he's going to have to come up with the money to take the necessary action.