Can anything be done here? - Posted by Tom
Posted by Tom on July 12, 2003 at 15:25:02:
We are looking at a home to live in for a very short time…just long enough to rehab it and shift money from some other deals that are closing soon. I have a larger family and the home is the perfect size for us, thus making sense for a home base for a time while we free up our other cash.
The FMV for the home is 140,000 and the current asking price is 95,000. The home has been sitting on the market for one and a half years and is now in pretty sad shape…alot of vandalism.
Because we are contractors, we would do the work ourselves for about 15k. We were hoping that since it had been on the market for so long, the seller would be desperate and willing to go between 70 and 75k cash but according to his realtor, he’ll get out with nothing at 95k. (His contract with his realtor just expired as well, leaving a little more breathing room)
The seller is motivated enough to want to get rid of this dead weight draining his pocketbook, especially after a year and a half of it, but he doesn’t want to come out of pocket to pay off the mortgage.
So my question is this, have you ever heard of a lender doing a short sale without the loan being in default? With the condition of the property, the lack of offers in a year and half’s time and the declining state of the sellers finances should tell the lender what direction this is going?
I don’t know, just throwing this out there…I know the seller doesn’t want to ruin his credit by defaulting and I don’t blame him. Just trying to find a solution for the both of us…
Any other ways to work this?
Thanks in advance for any input…