What To Do With This Pre-Foreclosure W/ No Equity?
Hey guys, I'm a newbie looking at my first RE deal and not sure how to work this one. I live in a nice condo complex in N. Dallas where 1 bdrs here sell for $70-80 and 2 bdrs from $90-110. My next door neighbor is facing foreclosure and hasn't made a payment on his 2 bdr since Feb this year. He purchased it 2 years ago for about $102 and owes $94. The bank started foreclosing on him earlier this year but then changed their mind and instead refied his loan and forgave all the missed payments! However, the first new payment was to be made Oct 1 and he missed it, so i see foreclosure for real very very soon.
Anyways, since he has so little equity what should I do? I thought about taking over his property subject to and lease optioning it out or using an Equity Trust for a Lease/Rent to own, but for the price I'd be paying a good cash flow would be difficult (he's currently paying $800/m plus HOA dues of $200/m). Plus I'm surrounded by nice apts so convincing renters to ditch their new apts for a dated condo for the same price will be difficult (it was built in the mid 80's and hasn't really been updated), regardless of home ownership advantages blah blah. Soooo, should I just attempt to contact the lender for a short sale? The lender has let him slide for 8 months which tells me the last thing they want is another foreclosure on their hands. Is that what you guys would do? What other options do i have?
BTW, seller is VERY motivated. He just wants out of his payments and would even leave the title in his name. There just has to be a way to make this work! Any advice is appreciated, thanks!
Randy
:-?
The answer to your question is Short Sale.
But DON'T short sale the Homeowners Association/Condo Fees, or they will make selling the unit a living hello!
ah, don't screw the HOA, got it (especially since I still live there!). Thanks!!