Can I help this Lady? Pre-Forclosure Question.

There is a lady who is in Pre-Forclosure here in the state of Florida she is behind in the payments by 6 months and the bank is more than likely ready to send forclosure papers any day or week now.

What steps can be taken to buy this property from the lady to obtain the home.

The house in question was once appraised for $275k she owes 260$ The back payments on the loans because she has a 1st and 2nd on the home are being about $11-12k .

Here monthly payments are $1900

Is there a deal here for me and if so how would you go about making this happen its a nice home and there are people that I know who will pay $1500 a month for the home.

ONe last problem I dont have good credit or a job thats my sceniro so if your a banker please dont contact me about trying for a loan but i can dig up people who have good credit if i need to.

Thanks In Advance for your help on this matter.

What it was once appraised for and what is worth now are probably totally different numbers. Find out what it is worth now. In Florida the prices went sky high and are now dipping back down. She might have bought it before the boom and maybe its worth $400k now. Or maybe she bought it at the height of the boom and its worth $220k now. You need to find out exactly what it’s worth. You can ask a realtor for a CMA to see what its worth. If you don’t plan to buy through them you should definitely compensate them for their time.

Hi the house would fetch in the area of $225k right now she bought at the top end lets say.

Well seeing that she owes $260k the only option here is a shortsale. Poke around in this subforum and look at some of the shortsale topics, should help you with the basics. I don’t know much about them so I’ll let someone else help you with the details.

To do a short sale, you’re going to need CA$H. The lender will require pmt in full once you have agreed on a price. You could do this with your “Credit Worthy” friends, or you could use a HML.

You don’t need any cash or credit, unless you intend to keep the house.

Negotiate the SS with the bank, then find a buyer and do a double close.

can one short sale a rental property >
what are the requirement for this ?

yes… the bank is selling the property, they don’t care who is in it… If the renters pay rent on time it could help you when you need to sell it. Investors like homes that are already rented.