Posted by Rich[FL] on January 23, 2002 at 16:00:59:
I am in just that situation. I had a seller call me on a postcard I sent in response to a Lis Pendens notification in the courthouse records. His house is worth at most $95k and his mortgage balance, not counting back payments and penalties, is about $104k.
Now, what can we do? It’s a conventional mortgage with Household Finance. At face value, not much. However, what if we could buy the mortgage from Household? And get the seller/owner to do a deed in lieu of foreclosure (much faster and less expensive)? This is exactly the tact I’m taking; I just faxed the offer(s) to Household this morning. The terms of this “multiple offer - you pick which one you want” is 1) $60k cash; 2) $104k with Household financing my acquisition at a nominal 2% interest.
Will it work? I don’t know; but I do know it WON’T work if I don’t try something .