Motivated Seller upside down. What are the options?

Question

Hi everybody,

I've spoken with a couple of FSBO sellers in the past month that are underwater. Not having any experience with those types of sellers, I wondered what experienced investors are presenting as options when they make an offer. Besides a short-sale, what other types of offers can you make to people who are motivated but underwater?

Thank you in advance,

Andrea

JD Martin · Answer

Other then them finding some outside source of money to make up the difference, you can float a loan to the seller for the difference. If you do this, it would be highly advisable to find something you can secure for the loan, or be comfortable overpaying for the property (assuming you would be overpaying with the shortfall) should they default.

You could also rent the house back to the owner at higher-than-market rates to recover some of the shortfall.

Andrea Johnson · Answer

Thanks, Jd!

Motivated Seller upside down. What are the options?

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