VA Sale...short Sale Candidate
Ok, I am really not sure what to do. A person owes $92,000 on this property. He bought it 4 years ago for $88,000. Then, he refinanced last year which brought the total back up to approximately $92,000. I did a market analysis and did the comps. That house's FMV is only $92,500. This individual has recently gone through a divorce and wants to get rid of the house. His job might require him to move as well. All he wanted to do was sign the house over to me and I take over payments. I don't think I can Quit Claim his deed, right? Is there anything else similar we couild do? He even agreed to rent the property until he leaves for whatever the market is. If I got a loan for the property, I could get $775 for rent. That just doesn't look good to me. Let me know if I'm wrong please. Besides I would be getting a house that is upside down. How long does it take for a property to start going into foreclosure? Would this house be a good short sale candidate? Finally, how would I go about getting that ball rolling. The seller is very motivated and willing to do whatever it takes to get rid of the property.
Thanks,
TJ
Virginia or Veteran's Administration?
Not sure how VA comes into play.
If it's worth $92,000, headed into foreclosure, the Owner has a bonafide hardship, and it can't be sold on the open market at a sales price that would be enough to pay off the mortgage.... you can probably get it discounted a bit...
[addsig]
Thanks for your reply.
VA (Veterans Administration)
The property hasn't actually gone into foreclosure. What are the criteria for foreclosures to happen. How do I start the process with the bank. Will they be the ones to determine a hardship or not?