I Wanted To Help Some Out Of Possible Forcloser?
But i called the lender and they told me that it has to be listed by a realitor at valued price. they might consider a short sale then and only a family member can assume the loan. the person that owns this house has no job and no income. so she can not afford to pay a realtor. im not sure how to look at this problem now. the amount owed on loan is 52,000 and the appraisle when bought was 57,000. in 2001. what can i do? :-?
There are a few things you can do here:
Both involve using a realtor but you should pick one that you can have in your back pocket.
1. You list the property at a factual as-is market value and have your realtor find a buyer. When you find a buyer you negotiate the short sale on behalf of the homeowners you are looking to help.
A short sale is when you ask the bank to accept less than what they are owed in lieu of foreclosure. Many will do this without much hassle. How much of a discount is a diffrent story.
2. If you want to buy the house you'll still want to list it but you'll want the realtor to not market the property at all and not put it on the MLS.
Have your realtor do a very, very conservative but factual market analysis and have that on hand when the bank's apprasier comes. You can negotiate with the bank yourself and buy the property.
3. Negotiate with the bank and also market the property for a new buyer. When you have a buyer and the bank ready to go you can double-close and collect a check at closing.
GOOD LUCK
thank you very much!! :-D
I am glad to remind you that the owner of the property is not the bank. It's "the person that owns this house " that could sell you the house. [*]Just option the house for the amount owned, then assign the contract to a new seller option amount to cover back pay + profit up to market value.[*]or let the person on title sell you the property for 1/2 of what is owned then call loss midigation to discount the mortgage. This way you make more of a profit.
thanks fly but it sounds like that method might hurt the persons credit. i am trying to save there credit. :-o
Well fisrt of all you bringinig the payments current stops foreclosure process wicth would damage credit just like bankruptcy (10yrs) their credit is sougth of shot any being they have't payed enough to be brougth to FC.So it's a win/win/win deal. The bank gets dept. current, the seller's forecloseure is canceled and you take home the spread...
Flyhomes, you indicate that you can"let the person on title sell you the property for 1/2 of what is owed then call loss midigation to discount the mortgage." I thought that the owner had to sell the property free and clear. If they sell it for 1/2 then the mortgage is not free and clear. Will loss mitigation honor that contract? I am a newbie so please bare with me.
If your market is appreciating anything like the FL market, a house bought for 57k in 2001 would be worth about 95k today. Why don't you just list it with a realtor? The realtor does not get paid until the house sells. Call a realtor that has a house for sale in the area and ask them to come over to look at the house and tell you for what price they would list the house. You might be shocked at how much the house is worth. Typical realtor commission is 6% of the sale and typical closing cost are 3% of the sale. So there should be money here for the homeowner after the sale.
Brenda
well indiana is a far cry from florida. and no houses might be a rough comodity here. i beleive indiana resently became one of the top 3 states for the most forclosers. to much off that 100% financing is killing this area. and as for as the property being worth 57,000 in 2001, houses that r the same as this one r only selling for 65,000. in good shape here. we have at least 3 towns in the area that have new building and two being banks that r empty cause the towns r now ghost twons because of businesses leaving the U.S.A just look up Connersville, Indiana and see for ur self. look under www.realtor.com or hud and see all the listings. make sure u look up town population to. they will ask u to turn out the lights when u leave. :cry:
Perhaps then you should buy and hold in the hopes of the day businesses start coming to your town and it grows? Get some steals now and hold on to them as cheap rentals or something.
Quote:
On 2004-11-10 19:56, jaborg wrote:
well indiana is a far cry from florida. and no houses might be a rough comodity here. i beleive indiana resently became one of the top 3 states for the most forclosers. to much off that 100% financing is killing this area. and as for as the property being worth 57,000 in 2001, houses that r the same as this one r only selling for 65,000. in good shape here. we have at least 3 towns in the area that have new building and two being banks that r empty cause the towns r now ghost twons because of businesses leaving the U.S.A just look up Connersville, Indiana and see for ur self. look under http://www.realtor.com or hud and see all the listings. make sure u look up town population to. they will ask u to turn out the lights when u leave. :cry: