Is there anything I can do with this?

Question

Get a call from a lady - she and hubby are separating, need out of the house. They are 100% maxed as they just took on a second a few months ago. Property is worth roughly 250 in great shape. havent seen it yet.  First note has a balance of 167K $1500/month piti. The actual mtg is roughly $1000 of this. High taxes here in town.
The second they just took is for the rest of the house. They are too maxed to sell it, but are willing to continue to carry the second to get out.
I dont see how I could sell it later because of the second, renting would get me just about 2k month. They are not yet behind.
Is there anything I could do with this?

Rich Schroeder · Answer

sorry to take space on your thread Minna...

Specialist- stupid question....why do you say 6 months from now? I understand (generally speaking) that housing was over-priced and anyone with a pulse could get a loan a while back, and that a lot will be defaulting...but how do you figure 6 months?  How can you be so specific?

Thank you in advance,
-Rich

Michael Rossi · Answer

Minna is exactly right.  There will be a glut of foreclosures coming on the market, starting in about 6 months.  That is because there will be a huge number of gimmick loans resetting.  This will last over the next 2 years.

Is all real estate local?  NO!  The real estate market in most of the United States is in the toilet and headed down!  Are there a few areas that are still appreciating in a huge country like the United States?  Yes.

Mike

Account Closed · Answer

Mike,

As you like to hammer home when you tell people to view 100 properties, all RE deals are local. People invest in specific markets and they do their best deals when they know the specific market.

It does not matter what is taking place nationally when you are checking 100 properties in a specific market.

It does not matter what is happening nationally when you do a deal with 30% equity and positive cash flow using the 2% rule.

National information is great for headlines in newspapers and for shooting the breeze discussions.

John Corey

Account Closed · Answer

Rich,

Very good point. Even more so given that some markets are up close to 10% this year while other markets have been falling for something close to 18 months. The predictions are not much better than the type made by sub-prime borrowers who figured that if the market keeps rising they could sell for a profit.

Maybe it was just comedy and we both missed the joke.

John Corey

Mitchell Harter · Answer

I hope you're not giving up on the first 'no'.
Send your (adjusted (lower)) offer in monthly...

Account Closed · Answer

The seller continuing to pay payments while selling subject-to can be a winner for the seller compared to a default. It will cost them but they made that mistake some time earlier.

I am not saying there is a deal here. Just that a seller that recognizes they have a problem and will continue to feed the problem until the debt is dealt with makes sense (paid down or paid off from a sale).

People paying their bills is a good thing.

John Corey

Kyle Gregory · Answer

dont get involved in this situation!!!!   run far far away as this might end up in a very ugly situation

Matthew Giegerich · Answer

Minna-
 the day is about 6 months away when a flood of F/c hit the streets. the banks are going to take a bath then. All we need is patience!! 8)

Minna Reid · Answer

Yeah I do. But I'm finding the bank generally takes the house as high bidder at auction, and I do put offers on REO's all the time. They never get accepted. Even after the house languishes on the market forever they're still not realistic about what they'll take for it.

Jim Gordon · Answer

Minna thats a major problem currently with the motivated sellers I run into. They are so far upside down on the value of the home that there is no way to help them move on execpt go for a short sale and if they meet their current obligations the lender will not allow that.