OfflineHere is a scenario that is playing out: my friend owes $342,050 on her home with monthly payments of $2182. The tax assessment is $274,000. Her husband has accepted a job in another state, so they have not made payments since June and now owe $11,282. The house needs exterior paint and new carptes, otherwise it is in good condition (4BD/2.5BA). They are prepared to just walk away, but it would be nice if I could somehow help the situation. Is it even worth it? Your expert opinions are much appreciated.
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If I was advising my friends or family in such a situation as described above, I would advise they contact a real estate attorney.
There is far too much unknown in the scenario you describe, and then there is no way to understand how much of their legal rights in the situation they are aware of, coupled with who the lender is, what the lenders current feelings are and what their guidelines are at this time regarding being behind in payments.
Also do not know what type of loan they have, what the Fair Market Value may be of the property, how fast values still decline in their market, and whether or not they may still have legal options available regarding the deficiency described above.
There are alot of unknowns in the scenario, and when there is a deficiency, people often need to know what options they have available and the best advice comes from retaining a real estate attorney.
Then they can make informed decisions that will impact the next several years of their lives.
Happy Investing!
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Take Action = Results!
If it is to be, it is up to me.
Thank you for your advice, Brad. It is a Fanny Mae loan through National Star bank, which has not been cooperative so far (refused short sale offer, etc). We are south of Seattle, where prices have stabilised somewhat, and they are looking at all of their options.
There are quite a few posts regarding buying the notes of upside-down houses, lease to own, and renting out upside-down houses. I am still very new at REI, but they are willing to explore any option available to them. Is this idea worth pursuing?