Posted by David Gregory on March 15, 1999 at 21:29:22:
In the situation that you describe I would think the best thing that he can do is put the house on the market at a slight discount and try to sell it fast, get out from under a bad deal before the arrearage eats up all of his equity.
As far as an investment in my opinion the margins are too small, if this was purchased for investment purposes there will be a lot of soft costs buying and selling to be added to the purchase price.
I just talked to a man in pre-foreclosure on his home due to medical. He’s 3 months ($6000) behind and his mortgage company is threatening him but haven’t served yet.
House was appraised last year at $215,000. He owes $178,000 @ 11.75%, 1900/month. There doesn’t seem to be enough equity to safely take over the payment and catch up.
Any profitable suggestions to help him out of this situation?