I HAVE A SITUATION WITH A OWNER WHO JUST WANT TO GET OUT OF HER HOUSE. SHE IS NOT IN PRE-FORECLOSURE OR ANYTHING, BUT HER MORTGAGE PAYMENTS ARE KILLING HER. I REALLY WANT TO HELP HER SO BAD, SHE HAD ME IN TEARS AS SHE EXPLAINED TO ME HER SITUATION. SHE PAID TO MUCH MONEY FOR HER HOUSE AND IT’S A DOWN MARKET RIGHT NOW. I HOPE THAT SOMEONE WOULD BE ABLE TO GIVE ME SOME ADVICE AS TO HOW I MIGHT BE ABLE TO HELP HER. THANKS IN ADVANCE FOR ANY ADVICE YOU CAN GIVE!!!
This is a tough tough situation that many Americans are in right now. So many are in homes that they can’t afford with IO or short term arms it is becoming a huge problem or should I say it already is a huge problem. I recently helped a guy get out of a house that he didn’t have enough equity to even pay a realtor. This is what I did.
We put an ad in the newspaper advertising Owner Financing Available. The first day the ad ran we had a lady that was very interested and actually had good credit but didn’t want to get a mortgage. We were asking for a 10k down payment that she didn’t have at the time so we ended up raising the monthly payment to $1600/ month and she was fine with that.
You mentioned the lady felt hopeless and so did this guy he wasn’t quite to the point of tears yet but, this guy was ready to let the house foreclose and now he is getting $300 / month positive cash flow and on the way to rebuilding his credit as it was bad due to late payments and other issues. In my opinion the key is good creative marketing. If the house is junk and the neighborhood is bad the greatest marketing in the world may not help you though. That is what I have realized through the deals that I have done.
Also, I didn’t make a cent off of this deal but I was glad to have been able to help out and I invested very little of my time to do so. I hope this helps.
Sean
Thanks for your response.
This is a tough situation and I really want to help her, because it’s not all about the money sometimes.
This lady was crying to me and she asked me to help her and I want to help her all that I can.
The problem that I’m having is that, since she paid to much, her mortgage payment is extremely high and it doesn’t even include her taxes & insurance.
She has a brand new beautiful house, it was built 9 months ago. Nobody never lived in the house. The problem is that nobody is going to buy her house for the price that she paid in this downmarket.
Do you know about land trusts? I heard something about land trust are good to do for homeowner’s who don’t have any equity.
Thanks again!
I know what I need to know about trusts but by no means an expert. I don’t see why the lack of equity has anything to do with a trust being beneficial?
If you find a buyer for the home without realtors you will save there. If you find someone who needs help with fixing their credit needing 100% financing they will pay a premium. Your best bet may be to do a lease option or rent to own and pay down the mortgage for a couple of years. There are lots of options and if you say that it is a beautiful house then you should be able to figure something out.
Also, if you aren’t going to try and make any money on the deal you don’t need to put the property in a trust you can have her sign a limited power of attorney specific to this property. This will give you the ability to negotiate and sign forms on her behalf.
It is often a good idea to not have property in your own name anyway so for asset protection a trust or LLC may be a good idea.
Thanks again for the advice!
Helping is good. You are right… “It’s not all about money”
Consider doing a short sell approved through her lender. This way she can sell the home someon with fair market value at the moment. You will need to justify to her lender why they should take a loss…
Good luck.
DFW
DFW,
Thanks for the advice. I’m going to look into this asap.
Take care and be blessed in Jesus name!!!
Short sale is not an option. DFW as was stated in the initial post the mortgage is not even in preforeclosure yet. They are not going to accept a short pay on a mortgage that is still current.