Preforeclosure Assistance Needed
I just got off the phone with a gentlemen whose home is in foreclosure. The sales date is FEBRUARY 23. The property is currently worth about $118,000 as is. The owner has a $88,000 first mortgage and a $35,000 second. The owner declared bankruptcy last year(one year ago) and home is just being sold now. Is there anything that I can do with such short notice? Thanks in advance for your guidance.
I just received some additional information. It turns out that the Second Mortgage is foreclosing and the first mortgage is a FHA loan.
Posts by Dwan Bent-Twyford on this site under the Partners Icon above (green) will be very helpful to you I Think. God Bless!!!!!
Foreclosures are done differently in different states so my experience may not apply where you are. I have stopped sales by putting up non-refundable cash that will apply to the payoff of the loan if I close on the property within an agreed upon time.
My question is why do you want the property if the value is $118K and the loans are over that amount? ($123K)
You said "as is" but what needs to be done ( in $) and what will it be worth when completed?
Another issue is who holds the second? Is it a seller carryback or institutional money? You will likely have more flexibility with a seller carryback than you will with a note held by an institution.
You might give us a little more info on this one.
Regards,
Ed
I am planning on making an attempt at a short sale. The property needs about 15k in work. Comps are going at the 135k range. My thought was if I can get this property for under 100k, it would be a decent deal.
At $100K you still may be a bit thin since there is $15K of work to be done. What are you going to do with the property if you are successful with your short sale?
The plan was to wholesale it to a rehabber. Is it true that you can not negotiate a short sale on a FHA loan if the property is not occupied? Thx.