Kind of skinny…but - Posted by Jim FL
Posted by Jim FL on May 31, 2003 at 17:37:16:
Well, this is kind of skinny, and frankly, I’m somewhat amazed there was an investor who wanted to buy the place.
There might be some things you can do, and by all means, give something a try before just allowing the house to go to foreclosure.
You certainly don’t want or need that, especially after a BK.
At this point, sounds to me like you need debt relief.
So, let’s find out some info first.
You said the house is worth $325k now?
How accurate is this? Where did this come from?
I’d run some comps on the house, and nail down a good solid value.
Your payments are what? Total, including taxes and insurance per month?
Since the house is new, there probably are not too many repairs needed, if any, but if there are, what are they?
Now, what is market rent for the house? Is it even rentable? (Meaning, do you live somewhere with a strict HOA, since it is a gated community, and do they allow rentals?)
You might offer the house for sale “Owner financing” and collect say 10% on a $335k price, maybe less down, and just make the interest on the seller carried note higher than the interest on your underlying note.
Put a prepayment penalty in your note with your buyer to cover the penalty you have and then some.
You should be able to sellthe house to someone else, with seller financing, for more than the house is worth, or at least close to full value now, and not lose anything, perhaps even making a dime or two.
Gather some numbers for us, like the actual value, and market rents, the HOA rules regarding rentals etc.
Surely with more info someone here can guide you on a possible course of action.
What ever you do, keep the payments up, and market to sell the house HARD!
Do NOT let the house go to foreclosure, trust me, not a good thing at all.