Let me preface by saying that I this is my first attempt at a ‘real life’ deal and I am not even sure if there is a deal here anywhere, but I would love to make this a win-win for both myself and the homeowner if at all possible.
That said, here are the details:
PROBLEM: Seller can’t make payment anymore.
Seller owes 151,000 on first and about 8,500 on 2nd. Total payoff = $160,000
Comps from realtor say $177,000.
Purchased with no money down, 30 yr fixed at 6.75% in May 2003 for $162,000.
Seller spent $100,000 renovating since purchase. New windows, new plumbing and gas pipes, new ducts, new windows, etc.
She cannot list with an agent because she can’t pay the commission. She cannot make another payment, though she is current on BOTH loans. Payment #1 = $1680, payment #2 = $89.00
What the seller wants, if possible:
Seller wants at MINIMUM to get rid of mortgage payment without forclosure.
Ideally, she wants $225,000 to make her happy. She has not yet done anything to sell on her own (denial?).
I guess the biggest thing here is to figure out what the house is really worth (Dee works lighting fast, so I should have this soon), but after that, is there a way that I can help her out and make some money too?
If the comps support the lower price of $177,000, is there any way I can rig a deal so that she isn’t responsible for the mortgage payment (some creative solution)?
She doesn’t need the small amount of equity it looks like she has anytime real soon. She just wants out without forclosure.
And, of course, if there is no deal, I need to know that too. This seller is really motivated and needs to do something FAST.
Thanks in advance! This is my first post, but I have been reading my butt off here. 
Laura in Austin, TX