Possible pre-foreclosure deal - Posted by Ben (NJ)
Posted by Ben (NJ) on February 18, 2000 at 11:34:27:
A guy I grew up with is about to lose his home. Nice house in nice neighborhood but needs alot of work. Bank is very close to getting final judgment in the amount of $146,000 and then scheduling a sheriff’s sale. There is also another $60,000 in federal and municipal tax liens which would not be extinguished by a sheriff’s sale. House “as is” is probably worth $135,000 so it is seriously upside down. Any opportunities here? I have a feeling the bank would be willing to take a big discount to get rid of this headache. I also have the cooperation of the property owner if I needed it. There are a dozen or so judgments which would be cleared by the sheriff’s sale so I am tempted to let it go to sale just to make it cleaner but then the bank would just bid it up to $146,000. What about the IRS, are they likely to discount what they are owed? (about $50,000). I also know the company that owns the tax lien since I am in that business and I may be able to get them to discount a little bit too. Would it be worth getting a quit-claim deed from the owner and then trying to hammer everyone down? Sorry I am babbling but I would like to help him and/or me if possible. Sooo confused! Thanks for any help!