Foreclosure likely but - Posted by Duke(OH)

Posted by Rick(MD) on July 24, 2002 at 19:46:44:

Al,

That’s too funny. Just discovered you posts today and every single one is right on the money. I am hereby registering my membership in the “Al-So Cal” fan club.

Rick

Foreclosure likely but - Posted by Duke(OH)

Posted by Duke(OH) on July 24, 2002 at 15:02:08:

Hi guys. I have a situation where a friend is likely to be going into foreclosure. Her situation is an overpriced refianced 2 Br, 1Ba, basement in a real nice area. She is ready to walk from the house and I believe there’s a possible deal in it. I would say the comps are around 85K and she owes 91K and the house needs work around 10K. My question is how can you make money on an overpriced home, with no equity? It was listed with a realtor for 98K. I was thinking subject to and seeing if the lender would discount the sale? Any thoughts would be appreciated? If you need more details let me know.

Thanks,
Jay

Re: Foreclosure likely but - Posted by Todd B(Va)

Posted by Todd B(Va) on July 25, 2002 at 13:28:13:

The only way to make money on this is to do a short sale with the bank. This will only work if its a conventional loan. Since it needs 10 of work, there is a real chance the bank will take 55k or 60k rather than take it back. Also, you can put a clause in the purchase and sale agreement removing your friend from any liability to the bank, so she would be out free and clear, and her credit would be saved.

In the How to section, go look at the “No Equity=Big Bucks” article by Kwan Bent. It tells you almost everything you need to know. Look in the archives under “short sale” for more info.

Todd B(Va)

Re: Foreclosure likely but - Posted by Al - So Cal

Posted by Al - So Cal on July 24, 2002 at 15:52:06:

You are a sick little doggie.
Do not do a deal just because you can. The object as
you no deep down in your uncluttered mind is to what?
Its BUY LOW AND SELL HIGH! Now you know that. The numbers are horrible on this deal. Now go out and find a good deal and quit trying punish yourself. Youre too good for that.