Posted by Terry Y. on October 09, 2003 at 22:00:59:
Mark, i would try and short sale the loan first. If they entertain a short sale, you could get a nice discount and probably even re-finance it at a much lower rate than what your friend had. Your short sale package should include pictures of any repairs, a hardship letter, a net sheet,AOS, and comps ect. Let them know that he is planning on claiming bankruptcy soon, if he can’t sell it. They may ask for a listing contract with a realtor, your friends w-2’s, paystubs, ect. so be prepared. As you know, you will need that loan authorization form, to get the ball rolling. If the short sale doesn’t work out. Then acquire it subject to and re-instate the loan. They will let you re-instate. Good Luck!
I just found out my frient has a forclosure filed against him. It just happened last week. I know he has a decent amount of equity in the house. What should my first step be after contacting him? I will go knock on his door. SHould I get all the loan info and auth to release loan infor and verify the #'s? I am thinking of offering to purchase sub2. Do you have to talk to the bank to find out if they will allow the loan to be brought current? Any help would be great. mark
If you know that he has a fair amount of equity then you could get the deed sub2 along with a release of info letter. Then contact the lender and inquire about bringing the loan current or a short sale.