House almost went to foreclosure, now owner wants to stay!! - Posted by Dawn and Don_MD
Posted by Dawn and Don_MD on April 27, 2000 at 12:46:39:
HERE ARE THE DETAILS:
Have a person who was in the process of going to foreclosure. They have gotten the bank to stop the foreclosure, but the bank wants someone else to take over ownership of the property. The owner wants to stay in the property and is looking for someone that will let them lease option the property back in 6 months to 24 months. He says that he will be receiving a loan coming in the next couple of months that will pay off the mortgage that the bank wants (approx. $110,000; this includes $98k old mortgage and late fees and charges). The house has been appraised at $150k, which would be our option amount.
The owner says their is a way to get us cash back at settlement of about $5k. We’re new to this so we are confused on how that would work. Right now we think the best way to qualify for the mortgage with the bank is to use the lease as the verifiable income. We think our credit to debt ratio would be to high and we have had a few blemishes in the past year that we are trying to clear up on our credit report due to late payments on some credit cards.
We would like to do this deal if it is truly something that can be done. We definitely could use the $5k up front and the $30k on the back end when this guy exercises his option. I guess the worst cases scenario is he doesn’t pay and we foreclose and sell his property to someone else.
Can some of the experts give us advice? We like the numbers but aren’t quite sure of the details. Please help.
Dawn and Don_MD