Re: Refi after a BK…how quickly can it happen? - Posted by JohnBoy
Posted by JohnBoy on April 21, 2000 at 12:58:01:
Verify the exact amount with the lender to bring the loan current. You can set the deal up to where you would just take title “subject to” and subject to you placing a suitable tenant/buyer into the property.
Once you have everything verified and the paper work in place you can run an ad in the paper offering a L/O or seller financing. You can get above retail because your offering terms. You just need to find a buyer with at least $15k to put down.
Run an ad like this:
Owner will finance!
$15k - $20k Moves You In NOW!
If you find a buyer with enough to put down, use their money to bring the loan current. You sell on a wrap at a higher interest rate and selling price and collect the spread every month. Or L/O and collect on the spread each month.
You might even find a buyer that you can get financing for with enough down and just sell the property out right and collect the spread and be out of the deal.
If you can’t secure a buyer then you just walk away from the deal! It will cost you a little time filling out the paper work and the cost of running an ad to find a buyer. You just need to determine if it’s worth the time and expense of running an ad to take a crack at it!
Also, if you did find a buyer that you can get financing for, you can also try and get the lender to take a discount on the mortgage by agreeing to a short sale. This would put more cash in your pocket at closing!
As far as getting this lady refinanced now, it is highly unlikely! She has no equity and no lender is going to refinance her at 100% LTV when she’s in foreclosure, behind $14k in payments and recently filed BK. It just ain’t gonna happen!