I have a situation and I really need some advice really soon.
I have an out of town seller whose in pre-foreclosure. She purchased the house for her daughter, so the daughter is living in the house. The daughter fell into hardship and got 4 months behind on the mortgage payment. She owes the bank $10,000 and she has $7500 to pay the bank, but of course they won’t take it (they want the full amount due).
The mother & daughter really need and want my help. The daughter would like to be able to stay in the house, and she even asked me if she might be able to put the house in her name and take her moms name off the loan.
Does anyone have any suggestions on how best I might be able to help them?
Please! Any solutions would be very appreciated.
Thanks in advance!
Purchase the property for just over the amount owed on the mortgage to give them some extra cash (if you choose) and lease/option the property back to the daughter if you trust she can make payments.
She can’t put the property in her name right now and expect you to get anything out of it, tell her to stop hallucinating.
Hey Danny The Great!!!
Do you think I should try to do a short sale with the bank on the house?
I really didn’t want to lease the house to the daughter, because I heard to many horror stories about letting the seller stay in the house.
I really do appreciate your advice.
God bless!!!
Try a short sale. The less equity-value the more likely a short sale.
Forget about the dumb horror stories people spread.
If there is a lot of equity in the house then you may want to consider a giving the owner a note for 2,500 secured by a second lien on the property.
It’s not much equity in the house. Thats why I was thinking about doing a short sale.
If you are new to R.E. investing, I would get someone that’s experienced to help you out. Maybe you can split the profits.
Short sales are something new investors should stay away from in my opinion.
I am new to this and I am partnering with someone who has a few months more than I do in short sales. We both are hungry, but our funds are so limited that it seems as if we can’t get off the ground…any starter tips to acquire a property and make a few quick thousand to get started?
Do they have a car free and clear.? There are lenders that will give you cash for your car while you drive it. They hold title. Better to lose a car than a house. if that do not work. Yes lease option. But do it like a land trust or land contract. Third option short sale.
Put private investor into house giving current owner rent to own at the new higher price to satisfy investor’s profit margin and take the foreclosure off the books and you have done a good deed and you are off the hook.