What's In It For The Owners?
In offering help to buy homeowners who are in foreclosure, what else can we offer them besides "saving" their credit? If monetary, then how would you calculate how much you will give them?
In offering help to buy homeowners who are in foreclosure, what else can we offer them besides "saving" their credit? If monetary, then how would you calculate how much you will give them?
"Help" is a but a byproduct of your pursuit of a discounted acquisition...
Homeowners who sell via mortgagee approved, preforeclosure short sale are prohibited from receiving any proceeds from sale. So, you can't really offer them any money. Sure, you can agree to purchase some furnishings via a separate agreement for cash... under the table... but that is a gray area and should not be treated lightly. You can offer to help pay their moving expenses (for cash, under the table) and perhaps even a security deposit on their next residence... But unless you donate the money to a nonprofit organization (to benefit from the tax deduction) who would then disburse the money directly to the displaced Homeowner.... it would have to be an unheralded, and undocumented gesture.
The real 'help' is that you are offering a way in which they can maintain some control and dignity by participating in a preforeclosure sale... instead of losing their home, and dignity at a forced, public sale.
Future creditworthiness? Maybe. But that's not uppermost on their minds.
The big Benefit to the seller is the preservation of their Dignity.
[ Edited by TheShortSalePro on Date 01/03/2004 ]
I never tell a homeowner "Selling to me will 'save your credit'". Their credit history at this stage is so badly bruised that no matter what inaction or action they take their credit history wont change much.
The primary thing you can offer them is debt relief. You're stopping the pain, the worrying, the sleepless nights, and the harrassement via lenders, lawyers, investors, phone/door knockers, counselors, etc,etc,