Is This A Deal?
I recieved a call from a homeowner of a 2 family house in foreclosure. Here are the stats:
the owner is behind: 50,000
owes bank: $230,000
appraisal: 329,000
Filed chapter 13 after losing job. Can make mortgage payment but the additional $700 payment above the mortgage to the trustee is killing him. The Sheriff sale is November 16th.
How can I help this guy? I'm thinking this is perfect for a short-sale and maybe a possible wholesale to another investor. I've inspected the property and it will take a couple thousand to update the house. What do you think?
If the homeowner is in Chapter 13...why is there a Sheriff's Sale? My guess is that he failed to maintain either the trustee payment, or the outside the plan payments.
I'm confused by what you wrote. Is the $50,000 that he is 'behind' included in the amount that he owes the bank?
Yes, the $50,000 is including in the amount. Any advice?
Two thoughts here. First, the bank is protected in light of the FMV v. the amount owed so there is little motivation to participate in a short sale. Second, unless the property was abandoned by the trustee you will have to get permission from him/her to purchase the property as it remains in the bankruptcy estate.
Actually if the house is involved in the ch13, then the attorney would need to get a release for the house so that the owner can sell. With the house being a part of ch13, it is tied up in the process.