Residential Real Estate Agent · columbus, OH · Member since 2008 · 5 posts · 0 votes
Newbie possibly looking to do first pre-foreclosure deal -- would like some feedback. I've been reading the forum, and reading up on the subject for the past many months, so I know enough to be *dangerous*...
Here are the details. Friend of my wife's, in early stages of foreclosure. Owes about $101k, 7 months behind on payments (which would equal about $6500). House would retail for $140k, and needs about $7k-10k in work to get it there. With that amount of equity, would Countrywide accept less than the balance owed, considering this person cannot make the payments, and wants to walk away from the house?
If so, what would be a rough idea of what they might take? I know I would have to paint a bleak picture of the circumstances for them...
I want to do right by my wife's friend, and hopefully be able to put some $ in her pocket. Foreclosure sale has not been set on sheriff's record, but she said it is in June...
Real Estate Investor · Las Vegas, NV · Member since 2008 · 1k+ posts · 447 votes
19y
If the bank accepts a short sale there is no way your friend is going to walk away with any cash. I am not experienced in short sales but if market value is really 140k they probably won’t accept much less than she owes.
Residential Real Estate Agent · OH · Member since 2008 · 553 posts · 24 votes
19y
At this stage the lender will still do a short sale but you have to be quick and have everything lined up. The only thing is if you want to "do right by her" the lender is taking it in the shorts they will not allow money to go to the person in default.
Residential Real Estate Agent · columbus, OH · Member since 2008 · 5 posts · 0 votes
19y
Thanks for the feedback -- as a follow-up, is there a rule of thumb for what to offer, such as a certain percentage of the ARV? I didn't mention that the home is in a decent, established neighborhood, in a good school district. There are many new-build neighborhoods in Central Ohio where the every other house has a for sale sign on it, and many w/ HUD stickers in the window -- this is not one of those neighborhoods...