help with short sale
Please can anyone tell me what to do?
Due to the death of his wife and then financial hardships , medical bills, etc. my friend is facing foreclosure. The mortgage on the house is 5- 6months in the arrears and he recently went and filed for bankruptcy, except that he thinks the house is not involved in the bankruptcy.
He has offered to deed the house to me in order to save it from foreclosure.
He owes two mortgage payments one to Household, the other to Citifinancial.
for a maxed out amount of $137000.
The loan with Citifinancial is only for $7000
The house will not appraise for anymore than this amount. My question here is how do I get the bank to work with me on this and once I get the deed , should I focus on getting the bank to accept a short sale and then sale to investor?
Thanks in advance for any replies! 
Hi Deb,
If he filed BK, he should know whether or not the house was included! You say he's "facing foreclosure", with 5-6 mos in arrears are you sure the prop's not already IN foreclosure?
He's offered to deed you the house in order to prevent it from going into foreclosure.... so you're willing to take the loan I presume.
What are the mortgage pymts?
You need to know what your intentions are for the prop. and a way out if things don't go according to plan.
Also, I'd get a "Letter of Authorization" from the owner to discuss a Short Sale before I get the deed unless you're sure you'll be able to satisfy you intentions.
What's the condition of the prop.?
Are the taxes current?
What other liens exist on the prop.?
What prevents the 2nd lien holder from filing foreclosure? once you talk to them. (if in fact there's no foreclosure on it now).
Is the seller willing to leave the loan in place?...if so, depending on the monthly mortgage amt. in arrears, you may be able to do a Subject To deal on it. At that payoff price the PITI could be only about $800. multiply that by 6 months, that's only $4800. (approx.)
Example:
If you're willing to pay the arrears in exchange for the deed (so to speak) and the house is in GOOD condition, you could put the deed in a Land Trust, offer the house for $147k non-qualifying, get $10k from a buyer, recoop you $4800. have $5200. left over, raise the int.rt. for a nice monthly spread, then get paid when the owner re-fis at the end of the term. 2-3 years.
Just my opinion,
Hope this helps,
Clif