Urgent: Need help with HUGE Deal - Posted by Seth

Posted by Tom (MI) on August 14, 2003 at 08:58:47:

Actually Seth, it is not your house anymore. Why don’t you contact the seller and try to get the deed. That way you won’t have to foreclose. Deed in lieu of foreclosure.


Urgent: Need help with HUGE Deal - Posted by Seth

Posted by Seth on August 13, 2003 at 18:06:22:

Hello everyone,
I have a dilemma and I need some serious advice. There is a house, which I know is going into foreclosure very soon. There is a lot of money involved and the house is in one of the wealthiest areas of town. The owner owes 500K on a 1st Mortgage, 40K on a 2nd, and 100K to the government for taxes. This is 640K that he owes. I am making it my mission to get this house back and make some money off of it. (There is a personal aspect of this also, this house used to be mine. It is the house I grew up in, and my mother is the one who holds the 2nd mortgage), all that aside… The person who moved in was a con-artist and he let the house go to crap. It’s not in the best of shape. The market value I believe is somewhere around 850-1 Million if it’s all fixed up. I’m thinking of trying to short sell this house BUT… my family and the owner of the house aren’t on good terms (because he still owes my mother 40K). Does anyone have any suggestions whatsoever?? Should I wait until it goes to auction? Please let me know. Thank you very much.

-Seth (NYC)

Re: Urgent: Need help with HUGE Deal - Posted by BobJ (Md)

Posted by BobJ (Md) on August 13, 2003 at 22:08:59:

I think you might be able to do sort of a reverse “friendly foreclosure”. If the terms of the second mortgage aren’t being met, the holder of the second can foreclose. When this happens, the holder of the second assumes the first mortgage.

Have your mother sell you the second mortgage for whatever figure you all agree upon. Then foreclose on the property. Assume the first, and kick the bum out.

Then, you can either find the money to rehab it, or you can sell it to someone who wants to fix it up. I don’t know if this would work for you, but it’s an idea. If the guy isn’t paying the first, you need to do this quickly because the first could foreclose and your mother would lose any chance of collecting.

BobJ (Md)

Re: Urgent: Need help with HUGE Deal - Posted by Barry (FL)

Posted by Barry (FL) on August 13, 2003 at 19:34:30:

If your mother holds the second, why doesn’t she foreclose, although it may be too late for that. If she has the money, contact the first. Usually they will allow a jr lien to make their lien current and then your mother could foreclose as the second lien holder.

Hope this Helps,
Barry (FL)

Re: Let’s see now - Posted by Ed Copp (OH)

Posted by Ed Copp (OH) on August 13, 2003 at 20:04:54:

You are emotionally attached to the house, and willing to “save it” for 100% of it’s real value; let me know how much money you make?

Re: Let’s see now - Posted by Seth

Posted by Seth on August 13, 2003 at 22:12:29:

Now, I didn’t say anything about 100% of it’s real value. :slight_smile: - My emotional attachment is that this idiot is ruining my house and I want to see it in good hands. Thanks for everyone’s comments though.