Can anything be done with this? - Posted by carson

Posted by dutch on June 05, 2006 at 15:31:37:

Yes, the bank would consider a short, but you are not going to get it for 50%. Figure 85-95% depending on the lender/investor/PMI company.

Another option, make up the back payments and take Sub2, owner is gone. Lease/Option or Sell owner carry on a wrap for a 5-10% premium over current value, plus add 3-5% over current loan (current is at 6, sell at 10%). Collect the cash flow and then when they refi down the road, collect the spread. Try to get all or most of your cash you spent bringing it current as down or option.


Can anything be done with this? - Posted by carson

Posted by carson on June 04, 2006 at 21:32:45:

U found a guy whos about 5 months behind, and wants out really bad. I think he has only lived there around 2 years so there probably isnt much (or any) equity.

Also the place isnt in that bad of condition

Would a bank even think about a short sale if the place isnt that bad?

can anything be done with this?

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.