Posted by SDM on July 19, 2002 at 20:10:09:
A hard money loan might work but we HM lenders are being a lot more careful now. Tell him you will buy his house at a discounted price. Then turn around and sell to a retail buyer and keep the change. This person is going to be very desperate soon. He will either file BK, which the judge will probably rule in favor of the lender, therefore he will receive nothing. Or he can sell to you and at least get something and no BK on his credit.
$100,000 equity on defaulted mortgage - Posted by AWWMi.
Posted by AWWMi. on July 18, 2002 at 18:51:30:
Found a homeowner that has defaulted on his mortgage the second time. He ran into a scrap twice due to surgery and fell behind on payments. Mortgage brokers are reluctant to refinance because of this and other minor discretions. There is $100,000 equity in property… What about creating a note for amount necessary to cure the default at 14-16%. Would that give enough position to foreclose if the situation dictated? If they were to move I would need to come up with $140,000 cash which would still leave some major equity but alot of money to come up with. Any thoughts on how else to handle this deal?
Thanks,
AW
Re: $100,000 equity on defaulted mortgage - Posted by JT-IN
Posted by JT-IN on July 18, 2002 at 22:12:03:
You could call a greedy guy like me, who would accept a deed from the owner, and I would pay off the mtg. Then I would Lease the property to the (former) owner, with an option to buy the asset.
Beats a poke in the eye with a sharp stick… if you are the owner. Oh, and it is a lot better deal than the Bank will ofer them, if they foreclose on the owner.
Let me know if I can offer my services.
JT-IN
Re: $100,000 equity on defaulted mortgage - Posted by Nate(DC)
Posted by Nate(DC) on July 18, 2002 at 19:29:57:
If they are at around 60% LTV ($140,000/$240,000 = 58%), you could get a hard money loan to pay them off and get them out of the picture.
NT