Posted by stewart on October 30, 2003 at 21:20:37:
I really know nothing, so take this for what it is worth. Lender has to have a reason to discount, and you haven’t said what the house is worth. If worth $120k and you want to give them $50k, then not much incentive, maybe but can’t hurt to ask and depends on each lender. Not sure what order to go in but I think you need some control over the house first including a poa and information release authorization (this first before contacting bank), contact mitigation department of lender to inquire if they would entertain a discount to the mortgage and could they send you a ss package. Do the package and send it off and see how they reply.
I came across a deal that looks viable. Only one mortgage which is current, but a bankruptcy that’s facing default. Sale date is December 9th. Amount owed is roughly $64k. Homeowner does NOT want the house. She wants to sign it over to me on Monday, 11/3. What is my next step with the lender? And, how much could I ask the lender to “discount” the mortgage? If I do nothing, this property WILL go to foreclosure! Owner doesn’t have a dime and has very bad memories that she wants to move past. I would say that if I could get it discounted down to a MAXIMUM of $50k, The deal is work-able. Thanks, in advance. -Blue