Foreclosure Deal...Help, Please. - Posted by Terry Dunlap

Posted by Joe Kaiser on January 29, 1999 at 24:07:08:

People in bankruptcy lose their houses all the time. A bankruptcy filing introduces the “automatic stay,” which stops nearly all adversarial legal proceedings, but the creditor can simply motion the court to be released from the stay and if there’s little or no equity, it’s granted nine times out of ten.

Joe

Foreclosure Deal…Help, Please. - Posted by Terry Dunlap

Posted by Terry Dunlap on January 28, 1999 at 18:24:15:

I have a potential deal, but am not sure exactly how to proceed. Here’re the basics:

*Homeowner faces foreclosure proceedings on Feb 4.
*Owes $6,000 plus fees.
*Home purchased for $75,500 in 1996.
*Appraised at $84,000 in 1998.
*Currently in Chapter 13.
*Husband & wife both working.
*Mortgage terms: $71,400 for 30 yrs @ approx. 11% making payment about $711/mo.
*Payoff is about $72,500 (mortgage co. says it’ll take 5-business days to get an accurate payoff… please!)

How can I help this family while at the same time make some money? If necessary, I can afford a 20% down payment on any plan which involves actually buying the house. As most investors, I would prefer to use as little of my own money as possible.

Any help would be greatly appreciated! Thank you all in advance.

Terry in Ohio

Re: Foreclosure Deal…Help, Please. - Posted by Michael

Posted by Michael on January 28, 1999 at 23:49:15:

Perhaps the bank will take a discounted amount,for the final payoff, for cash now, and not getting another house to add to their REO department.

It never hurts to ask…

Michael

Find another deal! - Posted by George

Posted by George on January 28, 1999 at 23:08:14:

LTV is too high. Owners credit already ruined. I don’t see motivated seller.

Re: Foreclosure Deal…Help, Please. - Posted by Denise

Posted by Denise on January 28, 1999 at 22:00:45:

The profit potential is too lean on this deal

Re: Foreclosure Deal…Help, Please. - Posted by RHONDA

Posted by RHONDA on January 28, 1999 at 21:54:12:

Your window to save this house is slim, not to mention the existing interest rate is high. You would have to add on another 2% to make an owner finance work. This might put the payment way over the top for the neighborhood. Besides, Chapter 13 should stop all foreclosure proceedings.

Re: Foreclosure Deal…Help, Please. - Posted by Denise

Posted by Denise on January 28, 1999 at 21:36:50:

The profit potential is too lean on this deal.

Re: Foreclosure Deal…Help, Please. - Posted by Ben

Posted by Ben on January 28, 1999 at 20:47:59:

I am a little confused. A bankruptcy filing would have
halted any foreclosure in its tracks with the automatic stay. How can the foreclosure proceed during BK?

Re: Foreclosure Deal…Help, Please. - Posted by Arlene Hairfield

Posted by Arlene Hairfield on January 29, 1999 at 05:00:38:

A chapter 13 bankrupcty does not nessicarely included the home that would be filed separtly under what is known as a Homestead Deed or Exemption, This could make a difference