Ok sorry for the confusion. I was approved for the new loan the FC is in my husbands name. We are not together on either loan. We new the value was in the repair but we are not willing to wait to buy the other two units. Its been a long time tring to get that done. So the short was for the next owner since we knew we would be better off selling to an investor. They agreed to a short because the place is inhabitable and this was better than a deed in lieu, their words not mine. Hope this helps.
Im posting this on several other site so if you see more than once, forgive me but I need a real answer quick.
Problem: My husban and I have poor credit (his 591, 561, 520; mine 560, and 525 no third) but we were able to get loans using stated income. He bought a condo in March of this year and we have 45k equity and the ARV is 250. Its in Chicago 3/1 with DR.
We are trying to tap that money by sale or otherwise to buy the OO home in a couple of weeks. We have had several offers but all want to buy the other 2 units which we do not own and know that the owner wants 188K for them.
To complicate matters, we let the payments slip so we could get a short sale. The bank is willing to take a short of about 130 on the 177 mortgage.
Now the interesting thing is that the bank has all three notes. The condo which is in default, the sellers’ old home that we want to buy, and the hopefully new loan for the purchase.
Is there a way I can loan the money to a company (LLC or LP) and cash out the equity for downpayment? Help the lender just informed me I have 7 business days before the close.
Letting payments slip so you can do a short sale with yourself?
This is getting pretty close to fraud. You will not get a stated income loan if you have a foreclosure and possibly will have problems even if all that is showing is a default that was later cured.
You might be days away from a large ‘crash and burn’ situation. Either that or I am missing the point of what you are trying to do.