Does anyone have any creative suggestions for this deal?
I have found a homeowner who is underwater, the house is worth 100k and he owes 120k. This property would not cashflow. I have thought about a wrap around mortgage, but that would not work either.
It may just be that the owner needs to give the house back to the mortgage company.
Short sale it.
Seller will probably have to stop making payments, so they need to talk to an attorney. List it at the correct price point, and your p/s will be subject to lender approval of the sales price.
This process can take a long time to complete.
@Lesley Resnick Why not take it as a short sale listing?
NOD-notice of default. Those who took the advice by stopping paying their mortgage ended up lost their homes by having no opportunity for short sale. Lenders are so efficient it is on the auction block where buyers have to pay 5% hammer fee to the firm and bank to acquire a property at market price. These days many short sale if available cost more than regular sales.
All great ideas....
The only additional piece of information, is that Florida is a legislative state and everything here takes a long time to run through the process of short sale or foreclose.
My goals is find a way to help these people save what is left of their credit and make a sale.
The reality is they may just have to go through the banks process and take it as it comes.
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