Posted by Ronald * Starr(in No CA) on July 09, 2003 at 19:54:59:
There are a couple of considerations here. If the property is in good enough shape that you could resell it to endusers quickly, I’d suggest you not get new financing. Just pay to bring the current loan current and resell before they can foreclose on you due to the due on sale clause. If they don’t even try to enforce the due on sale clause, all the better for you.
You don’t mention whether you could pay the loan arrearages on your own. If you can, fine do it. If you can’t, perhaps you can borrow that amount of money from somebody that knows and trusts you, secured by a second td or mortgage against the property or against some other property that you own.
While you say you can get the lender to take less of a payoff, I really wonder about that. They are owed $160K and the property is worth $250K. I see no reason for them to do a short sale. They can go ahead with their foreclosure and either get bought out at the auction or else end up with a property upon which they can make a profit.
I’s suggest not pursuing that route unless the lender has already agreed to it, in writing.
Good InvestingRon Starr****