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!