Posted by Zuriel on March 09, 1999 at 23:27:56:
The owner of this house cannot make the current and subsequent payments and is considering returning the property to the bank. Here are the numbers:
Current debt(loan balance) = 105,000. No other loans standing, Good prior payment record.
The house requires 10,000 in repairs/improvements for its FMV to reach 125,000+ Last four houses sold for this amount or more.
Current as-is value is less than 102,000. The owner will consider all options.
I need your advice!!! I was thinking of asking the owner to do a second loan (equity line or perhaps a 125% LTV). Use this money to implement repairs and save some as buffer until house is sold or rented. I heard FHA has a program that provides monies for expansion/improvements but I do not have the details. Once fixed, the house could be rented with a positive cash flow of $225. I am looking for $3-4k as my cut for the deal and I will not use my money.
Help! Is this realistic or should I let it go and bid for it after foreclosure? I will like to help the owner avoid chapter 7, if possible…