My thoughts… - Posted by Sean
Posted by Sean on May 23, 2005 at 09:21:59:
Not to get into the specifics of this case, but there are folks out there that do indeed take advantage of folks… Know a family right now that were sold a house that basically should be condemned less than 2 years ago by an investor with no scruples… now they have an overleveraged home with a foundation that is litterally disintegrating.
I do wish these shysters would get the hell out of the business… they give us all a bad name.
However, with that said, there are also folks who can play the victim card well… and folks who are legitimate victims… however remember lead with your mind, not with your heart. Wanting to help, doesn’t mean its the best move, or that you can do it.
I would say, if the house is in good condition, and worth a reasonable amount of money, run the numbers, what is your payday when you look at cost to purchase of 65k for the other investor plus back payments and mortgage? If the mortgage balance is low enough, and the total property value is high enough, buying off the other investor and taking full posession of the house might be possible.
Likely its not.
What is the house truly worth? What is the mortgage balance? What is the condition of the house?
Way I see it this other “investor” basically is about to be whiped out, as the bank isn’t going to care if he’s half owner or not, they foreclose the house is gone, and obviously this lady is not going to pay him back his 15k let alone the 65k he claims he’s owed.
Investor #1 is not in a position of much power honestly, unless the difference between the morgage balance and back payments is vastly under the market value of the home… I suspect its not. For him to exercise his 1/2 and make a profit, he’s going to have to bring the 1st current himself, and deal with the owner currently occupying the property… and he’s going to have a devil of the time getting her half given the nature of the situation… so he’s going to have to hold off the foreclosure, force the other 1/2 owner OUT… and then sell it and hope to make a profit… Basically investor #1 likely didn’t have a clue about what he was doing, and is not in a mess of his own creation.
This owner is being pressured by this guy, but in reality he’s not in control, she is… she just doesn’t realize it. Investor cannot evict her, she has posession and is 1/2 owner… he’s going to have to spend lots of money to get her out if he can manage at all to get a judge to do so… I doubt it. He’s going to have to hold off the foreclosure, as its obvious she isn’t and can’t make payments, or watch his 1/2 go away to the bank as well… etc etc etc…
Basically all investor #1 can do is harrass her for his money… and that’s it. He’s in a LOUSY position, and its his own fault for being there.
I say, call up investor #1 and play some hardball… he isn’t getting his 65k, if he’s got a brain in his head he’ll quickly figure out that he’s on the path to not getting a dime, and possibly going to have to spend even more money. See where he things his position his, and then see if he is anywhere near reality, or just in dreamworld… if he’s in dreamworld, tell him exactly where his position is and offer him something to walk away… If he has any business sense he’ll realize something is better than nothing.
Make whatever you offer him contingent on the bank (if there is little to no equity) working with you as well… if there is equity after getting rid of chump investor #1, dont’ worry about the bank contingency. Then just handle it as you would any other pre-foreclosure…
You get investor #1 to walk away for $X Dollars, plus back fees plus mortgage balance… you might make a nice payday… if you can do even better by getting the bank to accept a short on top of that… more power and payday for ya.