OfflineHello All,
I attempted some time ago to help a friend with a loan mod. The mortgage company declined b/c the income to debt ratio was too high. I was able to get the foreclosure date extended.
Now, I really need a short sale ASAP or a buyer. I currently have no means to fund it and the A-B-C closing doesn't work if I do not have an end buyer. I have no clue what direction to go in now. The foreclosure date that the bank has on file is for this week. So, I'm not sure how long the process is after that. I assume it is just a matter of when it goes to the Sheriff's Sale.
Any suggestions or ideas?
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"You were born as an Answer to a Problem"
Hi Dukeofsc,
Loan modifaction are tough. I personally think the way they structure them it sometimes ends up a disaster. They remodify the loan and the homeowner ends up with a much higher payment monthly than thay began with. At this point the bank will give them the option to list it with a realtor to sell it by a specific time. Here some banks give 6 months, I would guess the time frame would depend on the lender. Some will allow an extension. Foreclosure is not a short process. Are you able to purchase it yourself straight out? Even if you can't, I would get consent to negoitiate with the bank from my friend. Start looking for a cash buyer/investor. Make an offer to the bank 40% lower than fair market value and take in account if there is repairs, etc. Or you can do an assigment offer. Both of these strategies are no money down strategies. If you have the book look into chapter 8 where it talks about these strategy. Or use the search engine on the home page. And type in short sales, you can see comments from every angle. Dean offers The Success Academy to walk you through for a quick start. Continued success........Lubertha
"GOD IS STILL IN CHARGE, HE IS THE AIR WE BREATHE"
As Lubertha said, loan modification is tough and short sale is even tougher. The banks may deny loan modification and short sale, if they feel the the borrower will be in no better position than they are at present, and that foreclosure is the best option for the borrower. Listing the home on the market, so that the lender sees that the owner is making an effort to release himself from the property to pay back the loan is a good idea. You also have to consider, what is still owing to the bank? what is the FMV now on the home? Are you able to take over the loan, or do a rent to own option to help the homeowner? Is the home a two family, where you could occupy an apartment and the owner pay a rent to you after taking possession of it? Things to consider. Good Luck.
Sandra
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Thank you Lubertha and Sandra. I am gathering the info on the home with the total payoff amount and the comps for the neighborhood. I am also working on finding a buyer. Thank you both again as this will continue to help me gain more experience and be able to help others in a major way.
"You were born as an Answer to a Problem"