Pre-foreclosure Insight Please

[Angel Rivera]

Good afternoon from sunny Savannah Ga. I have a home owner in Pre-foreclosure. She owes 27k to BB&T and has a HELOC with an outstanding balance of 95k. 32K gets the mortgage and lawyer fees paid off (reason for the foreclosure) and what's left is the HELOC. The home's ARV is 310k. She's open to seller financing on the HELOC balance until we can fix and sell the home (45-90 day). I'm estimating a gross profit of $92,491.80 before paying my one partner in the deal. What do you think is a fair offer to someone who is going to lose their home? The other option is us walking away and her losing the home to foreclosure. I'm not trying to be heartless but this is the business we're in and I've never had this kind of situation. Any advice would be appreciated.

[Jay Hinrichs]

buy it at the courthouse steps and wipe out the heloc.. although the heloc will probably bid. 

this is a good deal as presented a fabulous deal actually..  no way i would walk from that one. 

if it was me i would cut a check to pay off both lenders.. and the give the owner some equity when you resell win win