Posted by MattFL on September 12, 2003 at 07:11:26:
If you really feel that this houses’ worth is closer to the high end of the comps then you have a lot of options. What will it take to re-instate the loan? What are the monthly payments? You could have the seller fill out a forebearance agreement and ask the lender to back-end the arrearage. Then take over the property subject to and keep the loan in place. It sounds like there could be some good cash flow here. Put a tenant buyer in there, let him/her pay down the mortgage for a while, get some money up front and make it a longer term deal. If the lender won’t back-end the amount to re-instate and it is maybe 4k or less, then cover it with the option money from a tenant buyer. It depends on what your needs are right now and what the seller needs from this deal. When is he moving out? I suggest you order the short sale packet anyway and weigh all your options. Who is the 1st lender? Some lenders are reading and willing to take a discount, some are not. You never know what is going on behind the scenes with the lender. They could desperately need to get rid of some of their non-performing assets. Then again, if they are a small local lender, they may not have many foreclosures there and may not know what you’re talking about when you say short sale and BPO.