Re: Can anything be done with this? - Posted by Scott D.
Posted by Scott D. on June 05, 2006 at 15:41:30:
I am just getting started in investing, but I have been involved in sales and also the mortgage business for several years. One thing that I learned in these businesses is that you should ALWAYS ask more questions. It is very possible that he may have more equity than you think. He may have made a large down payment from a gift of equity or from an inheritance or even from a savings account. The point is that you don’t know the borrower’s situation until you ask the right questions. If someone is motivated to get a deal done in ANY business, they will answer most questions.
In regards to the bank, that would be another situation where questions are necessary. I have dealt with many situations where banks or other organizations have liens or mortgages on a property’s title and they have accepted a reduced amount as payment in full. Also, what I have heard from other investors is that most banks would rather accept a reduced settlement than take over the property.
The point to all of this is to be sure to ask as many questions as possible. Let me know if this helps.