Posted by Mark-NC on February 10, 2000 at 07:27:29:
Ron,
More than likley as long as the collections are that old you can close this deal using an owner financed Note and selling the note at closing. I have done several of these with a lot more collections than that. The fact that they are more than 2 years old helps if they were recent it may be harder to get done.
Mark
Any way to help buyer with $2,000 in collections? - Posted by Ron
Posted by Ron on February 10, 2000 at 07:05:46:
I’ve got a potential buyer with adequate income and good recent credit. The problem is he has $2,000 in unpaid 1994 and 1995 medical bills.
He’s got a tax return coming, but that must all go to child support. (He was overdue with that, as well, but has a court approved payment plan in place.)
My understanding is that he must come up with the full $2,000 without any cash help from me. Is that right? (I usually contribute $2,000 towards buyers’ closing costs. Here, I could pay these bills and he could borrow the closing costs from a local program for first time buyers.)
Alternatively, how can I help him reduce or reorganize these old debts. I know he can call the creditors and try to negotiate reductions. Is it better if I do that on his behalf? What is the best approach to take with these creditors? If we tell them he is trying to buy a house, they will feel like they have him over a barrel and not be willing to work with him.
Thanks in advance for any advice.
Ron
Re: Any way to help buyer with $2,000 in collections? - Posted by Ben
Posted by Ben on February 10, 2000 at 08:31:50:
The creditors will figure it out anyway as soon as you contact them. I own a portfolio of old credit card debt and still get calls once in awhile from people who didnt want to know my name 3 years ago but now track me down to pay it off. I don’t think they got a sudden attack of conscience. However, I have written off this money along time ago so I still give them a break. Maybe allude to bankruptcy at some point in the conversation.