This is not my first deal, I have had others and they all went down the drain for all their own reasons beyond my control. So, I’m hoping to get some help from now on… What would you suggest for this scenario?
I am emailing back and forth with the seller right now.

So I remember all of them, I’m just going to paste your questions and answer them:
How many Payments Behind? 6-7?

Whats the total payoff? I owe I think 525

Value? 600-610

How much would it cost to bring it completely up to date? They would let me bring it current with 17k but I think they are saying the total costs to bring it current are 31k. With 17 they’d let me build the rest into the payments

Have you got any pictures of the house? No pics right now but can take them on Monday as I am going up there

how many bedrooms? baths? 2 story? single story? 4bd 2 bath Cape but not the layout of a normal cape.

If I was to be able to help you, would you sell it for what you owe on it to save you the debt relief?
I would say at this point I probably would just so I don’t have a foreclosure on there so it would be easier to fix my credit.
Is there any other liens, or judgements on it? There should be no judgements on there. Maybe a few hundred of water bills and some back taxes but I could actually pay them if need be but no liens on the house.

Are the taxes current? No but I would bring them current

Are there any major problems with the property? Nothing major at all. It’s ready to start being painted and have new carpet but I was waiting on that as I wasn’t going to fix it up for the bank so I had people come in to prepare it as it had old paneling and stuff like that so it’s cleaned out, patched up and ready to be painted. Kitchen is only about 18 months old and still perfect. Downstairs bath is updated. Upstairs was ripped out as it is to be updated. had 70s tile colors and such

when was it built? 1960s
What are the payments? Total payment is about 3600. I did an 80/20 and they are both in the 6.5% range

What is the yearly insurance? 800

What are the taxes? 5600

Are the taxes and insurance in the monthly payment? No

If you were to buy it. I don’t know if you’d be interested in selling it or keeping it for yourself as it can also be a great investment as the former owner put a separate entrance to the upstairs and used to rent the upstairs and downstairs separate. For resale, I was going to have it resided and also get rid of that entrance but if I were to keep it, I also had thoughts of putting a kitchenette upstairs and just renting them as 2 units as based on what it used to rent for and current market rents, the downstairs would be 3 bd 1 bath and would rent for about 2k and the upstairs about 1200k so if someone refinanced with a good loan, there’s be a positive cash flow. My thought was if I had to put this money out to pull it out of foreclosure, I’d definitely want to recoup my money so I was just going to do that, rent both units to at least come close to covering the mortgage and keep it for a few years and let it appreciate as the market has slowed but the lakefronts are still seeing solid appreciation and then I’d also be able to build back a solid current payment history.

I hope that answered all of your questions.


You didn’t state your objective - Are you trying to help this person? Trying to buy and flip for a profit? Buy for investment? Lets see …

UPB 525
Arrears 31
Total Owed 556
Value 600

Equity 44K

Counter to what the owner says, there is no positive cash flow available from renting this property. And there isn’t even equity enough to break even from a flip perspective.

So unless this person is a dear friend or a relative you are trying to help, I’d pass.

oh… sorry about that. The seller and I have had contact only by email. I spoke to someone else and they recommended a short sale. I have not presented any offers to the seller yet. I am still waiting to find out about his adjustable rate mortgage whether or not it is with 2 banks or just the one.