Foreclosure question - Posted by Chris

Real Estate Investing Real Estate Law
1

Posted by Darin on February 01, 2000 at 11:19:01:

If they are willing to foreclose and give up 60k in equity, that sounds really stupid.

For the sake of getting a deal, why not offer them something like $10k and take over the mgt.

Why dont they just sell the house at fmv and pay there debt off so they can recover.

It does sound typical of someone in foreclosure though.

Priorities all screwed up.

If they are going to be stupid, you can do nothing more than offer your services. So if that means you making a profit, why not.

Be sure to do a title search first, there could be other debt aginst the property.

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Foreclosure question - Posted by Chris

Posted by Chris on February 01, 2000 at 10:08:35:

I have a situation where a homeowner has:

$50,000 equity mortgage on home appraised at $110,000
$50,000 in credit card debt
several loans outstanding.

He mentioned foreclosure instead of selling his home. In foreclosure, can he keep his home? What about the equity in the loan?

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Re: Foreclosure question - Posted by Stephen

Posted by Stephen on February 01, 2000 at 23:51:11:

Why not just cure their default, place the property in a land trust, and give them some walking money. That way you don’t have to refi the property or pay off the lender. The borrower (current owner) gets the foreclosure off his back and some money to get into an apartment. You get a great equity position. The lender gets caught up on payments. Win-win-win!

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Re: Foreclosure question - Posted by Floyd

Posted by Floyd on February 01, 2000 at 22:40:00:

Are you sure he is not talking about Bankruptcy? Foreclosure will result in his losing the home and the equity. You should negotiate the purchase of the home if possible, possibly at the 50% plus walking money. A lender will look at a bonafide offer to purchase to stop foreclosure.