My sister pays her mortgage on and off. She bought a condo for 88k with a 3/1 arm. Her interest rate is well above 12% so she cannot afford it any longer. The condo is valued at 110k now. She is not paying her bills because she has alcoholic problems that severely affect her finances.
I think the bank wants to go into foreclosure b/c of their constant phone calls. She eventually wants to sell so she can move in w/our parents. I was thinking instead of her selling to a realtor, if it was possible to do a short sale with this property and resell it myself at market rate. Since we are sisters, will the bank have a problem discounting the mortgage to me??? If possible, can I have it in my husband’s name (different last name).
I think this is a good deal because she completely renovated the place 2 years ago and it needs maximum $200 in work. How can I go about this deal and if it is a profitable one??
Since you two are sisters, the bank will find it conflict of interest if you did a ss.
Your husband, might work. Depends on the lender. You will need her to sign an authorization to release information form that will allow your husband to speak to the lender on her behalf. Then, you can find out how much she is behind and what you will need in terms of a ss package from the lender, or other options you can think of to pull her out of foreclosure and purchase the home.
After you get it out of foreclosure, you can sell the property at market value.