Hi - I have run across someone in need of help due to health problems and am trying to come up with a way to creatively solve their problem as well as benefit myself of course. Here is their scenario (sorry if this isn’t the best forum for the question but my initial thoughts led me to this forum):
A couple facing foreclosure with bad credit (550 and 560 respectively). Balance on home is $315k, apprasies at $365k, payments of $2400/month at interest rate of 9.8%. 12k in arrears.
They also own a rental home (vacant) with a balance of $256K, appraised at $305k, payments of $1800/month at 9% interest.
Combined monthly income is $5k/month so they don’t believe they can refinance due to LTV on combined properties. They are willing to sell the rental property at outstanding balance + $12k to get them current on their first home but this doesn’t sound like a great deal for an investor and even with that sale, I would still see them having ongoing problems on their first home. Anyone have a creative way to structure something for them, perhaps involving both of their properties that would be attractive to both them and myself?