Will I guess you learned not to buy with a short balloon(under 7 years) without a way out. What you do and how fast you do it depends somewhat on your foreclosure laws. If it takes six months then you have time to do something. If he is being foreclosed before you he has the bigger problem. I know you didn’t make payments because you were selling. What about catching up on payments or has the 120 days expired. It seems like it should be possible to owner finance the prospective buyer that fell out then sell the note to get the problem solved.
Last June I bought a real fixer. It was a drug house. I paid 165K and the seller carried a wrap (all inclusive deed of trust) for 120 days. I sunk 30K into it and presto back on the market for 255K. With days left on my wrap I got an offer for the full amount which fell out of escrow only a couple of days before closing. Now I am in default on my wrap and the origional seller is filing for forclosure on me.
Here’s where it gets interesting. The origional seller is in foreclosure on another property and needs me to pay him off to get out of trouble.
Do any of you wizzes have any ideas? At this point, I am just going to have to refinance and then sell or is there a better way?