Is this a deal or not?
I have a family that does not want to move out of their house. They are just over $10,000 behind in payments (7 months) on a house with a FMV of $180,000 and an outstanding mortgage balance of $142,000.
Any suggestions?
I'm not a pre-foreclosure guy, but I think those that are will agree; this ain't a deal.
First, the numbers aren't that great. Total mortgage w/fees $152,000 + penalties/late fees. FMV is only a guide, deduct $10k for a quick sale (if necessary). Add in repairs and holding costs and the deal becomes skinny quick.
Second and most important, DON'T LEASE BACK TO THE CURRENT OWNERS. They couldn't make their current payments, how can they make your higher payments? Most important, there is a whole slew of legal issues that can arise when leasing back to the current owner. Search the posts, this has come up more than once.
Roger
Brett- I would have to agree with Roger. I want only motivate sellers; not sellers motivated to stay in their home. Tons of legal whiplash for you. Explain that you can lease back and explain you could give them some moving money if you could accomplish a short sale. If they are interested, proceed. If they insist on staying in the home, then move on. Good luck, Sharon