Friend is Upside down in house & needs help getting out!

Foreclosures, Short Sales, Tax Foreclosures
1

Hi Guys,

Im new to this field and just heard from a friend that he is over extended on his home and is looking for help in getting out of it or getting a reduction in his loan from the bank… He has a first on his property for about 150- 160K and a second for around 140K (back when the house was valued at around 400k) Now, the house is valued at only 250K and his business is going down hill and he is having trouble paying his mortgages…

Im looking at helping him out, not really looking to make a buck off a friend… Do you guys have any recommendations? He is still paying his mortgages, but its pretty much taking food off his table… He just missed his first payment… He’s in pretty bad shape emotionally and is not really upto talking with banks and stuff…

If i were to contact the banks on his behalf, what should i say or what can they possibly offer? Would there be a way to get the second off his back since the house is basically upside down? Basically whats the best route to take in this situation?

He is thinking of just letting it go to foreclosure, is there a better way that would still allow him to keep the house?

Thanks guys, any help or options you guys have would be much appreciated…

Thanks,
Karim0028

2

if he owes 290 and its worth 250 …
and IF he wants to keep it … then he has to keep paying.
if selling then has to get bank to agree to a short sale . and there are alot of short sale stories on this club site.
why keep a house worth 250k?
after deducting comm to an agent to sell it and expenses the net will be alot less than 250k that would go to the bank anyway not your friend.
foreclosure might be the best option

3

Have someone help him with a short-sale. That should be a very workable deal. I would choose this over foreclosure, for sure. You are welcome to PM me if you have further questions.

4

Ask the bank to renegotiate the debt. He can stay in the property and his credit might not get completely ruined. They don’t want a short sale for foreclosure.