I need some help trying to figure out what way to take this scenario (this is a friend of a close friend who needs help & good advice at the least):
Comps: 290k
Loan: 318k (June 2006) 1 Loan, HSBC
60 days late currently (2500/month)
Cooperative Divorcing Couple, wants rid of the property but absolutely zero $$ to contribute to anything
Homes in the area are taking about 120-150 days to sell at “comp price”
Am I missing something here or is the bank going to need to take a haircut of around 90k in order to make this deal profitable? I’m an agent so I could list the property and get an offer for a short sale, but I’m a bit nervous about the liabilities incured during this because of the potential of no sale by the time a foreclosure may happen - unless the price is low.
I am looking for some quick input, need to get back with them ASAP.
It’s always tough in this situation when you are trying to help friends.
The bank will have to take a discount on what’s owed, but the question is, will they?
I think your best way to help them is find a local investor who specializes in short-sales. Ideally someone who you know or comes recomended. You could even ask the investor for references of other owner’s he/she has helped.
Putting your friends in touch with such a person is probably your best solution. Otherwise, if you try and help and are unsuccessful it will put a lot of unneeded stress on you and your friendship.
It doesn’t seem like there is a ton of options for them, so perhaps a listing below FMV contigent upon lender approval would be the best course. If priced well enough, there should be plenty of interest for the people that want “instant equity” but plan on living in the property itself.