Foreclosure on Land Contract - Posted by cbatista

Posted by Paul_MA on December 21, 2000 at 02:13:04:

Hi cbatista,

In NY:
Land contracts are normally not recorded. This makes it easy for the seller to get the property back, especially if the buyer is cooperative.

I highly doubt you can negotiate a short sale with the lender, especially if the payments are current. But, its worth a shot.

If you take this property, have the title examined. You don’t want to be stuck selling a house with other encumberances on it.

Good Luck

Foreclosure on Land Contract - Posted by cbatista

Posted by cbatista on December 20, 2000 at 16:35:38:

I’m a newbie with some questions:

I’m trying to help a very motivated seller by buying her junker. She had previously sold it on land contract and is in the process of foreclosing on it. The buyers got a divorce, huge mess…

My question - will she have to go through a formal foreclosure? The buyers have agreed to sign the deed back to her. Can they sign over the deed in lieu of foreclosure? This is in Kentucky.

These are my possible exit strategies:

  1. The ARV is 55K, needs about 10-15K worth of work. She owes 19K on a loan from 1974. She’s willing to let me take over payments of about 215 per month. I’d wholesale it with terms for 23K, 4K down with payments of 215 per month.

  2. Could I negotiate a short sale with the bank even if she is current and discount the mortgage payoff event further - to say about 10K? Does anyone have any experience with this?

Thanks in advance for any advice.