How to wholesale a up side down mortgage? Help

13 Replies

I have a neighbor that moved to Florida 9 years ago because he is in the military. He owns the house next to me in Baltimore County Md. He has been renting it out for about 9 years but recently decided to let it go to foreclosure because he is upside down on the loan and its needs a new roof and water proofing in the basement. How can I help him out the house without having a foreclosure on his record and still make a small profit. He bought the house during the period of the mortgage fraud in the early 2000’s. Is there any remedy if he was caught in the fraud mortgages? The area we live in recently had two homes bought and rehabbed and sold, it’s a good area. If any investors are interested Please lets Network as well.
@Alex Gambrill The short answer is you really can’t wholesale it unless he will sell t to you for more then the payoff amount and the deal still works. If he’s vastly upside down, and the payoff amount is to high for an end buyer it won’t work
Originally posted by @Alex Gambrill :
@Caleb Heimsoth someone reference me to do a short sale, what do you think about that?

sure you can try that but the bank would have to agree to r which in today’s economic environment is unlikely 

Originally posted by @Alex Gambrill :
@Caleb Heimsoth if they do agree would you anybody you know be interested in buying deals in Maryland and Dc area?

Let me rephrase.  If they do agree it’ll take around a year most likely to get that short sale set up.  

And no I don’t.  Good luck  

Originally posted by @Alex Gambrill :
 someone reference me to do a short sale, what do you think about that?

We recently did a short sale whole process took 6.5 months. If  the bank is responsive, and   short sale attorney  knows what he is doing, it should not be that la year.

I think you should definitely try.

It is all about numbers, how much he owes, current condition, current market price etc...

A short sale done by a professional should take a few months - not 6 or 12, unless there has been a major complication. A short sale would also be the only way to sell upside down property to another party at market value and avoid a foreclosure.

Mortgage fraud? You mean he paid too much for the house? It's unfortunately but I don't think that's fraud, the bank gave him a loan. 

From here his only option is a short sale. There's no guarantee it will work, but it's worth a shot. 

@Alex Gambrill Doesn't sound like fraud from what you've said. If there was any genuine fraud, the borrower should have definitive proof of this and can find remedy through the legal system, if there was any.

The other thing your neighbor could do is to request a loan modification, if that would change his mind regarding letting the property go. Maybe if he has a lower payment or some principal foregiveness, he might hang on to the property.

You can't assign contracts on a short sale. Sounds like a standard short sale transaction if his home is upside down and if he wants to sell. 

You are referring to a period of time when predatory loans were more rampant. This wouldn't play a role in the short sale.