Friend In Trouble
I have a friend that had some financial problems and is about to loose his house in foreclosure. He called the loan company and they told him not to pay anymore and they would see if they could work out a plan for him
He just got a letter on Sat. sating they can't work out a deal for him due to his finance.
What can I do to help keep him from loosing his house.
He has his tax return coming as well as money from a house he is trying to sell out of town.
Is there a way to hold off the foreclosure until he get his funds. Or is there a way he would be able to get it back when he get his funds?
Will he have to move his family immediately or what?
I hate I don't have the answers to help him. I know a lot about different areas of Real Estate, however, Foreclosures are a mistery to me.
Can anyone offer some advice??? 
If he files bankrupcy it will halt and restart the process, probably buy him a month or two, perhaps more.
[addsig]
He was forced to file a "Wage earners plan" earlier and he still has about 1-1/2 years in there. His house was in there for arrears but the Mortgage company filed a "stay" (I think he called it).
They are now moving forward with the forclosure.
What are the steps they have to take to know how much longer he has?
what does he owe? How flexible is he with selling the other house? What are the specs? As long as he will negotiate on price or terms, we can get that other house sold quickly and money asap to him. Let us know more please. The members of the Creative Investor can help if anyone can!
-Scarlett
I don't think him wanting to negociate is going to be a problem. His main concern right now is to save his house.
His primary resident is appraised at $110,000. he said he owes approx. $87,000. he had a 30 yr. mortgage at 6.25%.
The other house he had is approx. $66,000. It has a mortgage on it for $18,000.
I found out the only catch is that he is in "Wage Earners Plan" and that house ($18,000) is included in that plan. He say's he has been in the plan for approx. three years with 2 more to go or a bal of $45,800 to go to payout 100% in his "Wage Earner Plan"
What are his options.
If his finances are the only thing holding him from a work out with the bank, then have him make up additional income. The bank is more concerned with the household income. If he is married, he could and should submit his wife's earnings as well. Or , he could tell the bank that he provides daycare services or something like that on the side for additonal income. Most of the time, the bank will ask for a simple letter from his clients proving that he provides day care services and proving how much money he makes with each client. Just find a few people you know and trust to write letters to the bank stating you provide some type of service for cash and submit it. They may ask that the letters be notarized, I guess it all depends on what bank you are dealing with.
yipes, that's loan fraud, and the advice you are giving is very dangerous.
Don't give unethical advice like that. Filing BK is the better way to go, unless someone can go in there and do a sub2 deal, and take over the guy's mortgages, make up the arrearages owed, and stop foreclosure, then flip the properties for profit.
Best of luck, Dave
Thanks for all you all's responses. I'm going to run some by him.
If he can come up with the arrears, would the bank be forced to stop the foreclosure, or can they continue?
I might be in a position to help him with the arears, but does that leave me taking a chance on the bank still foreclosing and me loosing my money?