Pre-Foreclosure Deal - Help

. I have a homeowner whose home is scheduled to be sold this coming Thursday, 11/20. He owes approximately 225K and his home is worth between 350-375k based on comparables. He delinquency is about 30k to cure. His first mortgage is at 6.2% and monthly payment is 1300 not including taxes.

I am contacting the lender to day to see if the lender will push out the sale date. The lender states that it will accept certified funds to cure the deficiency up to the day before the sale.

There’s the backdrop. Now to the questions.

  1. Assuming the lender is unwilling to push out the sale date and the owner is willing to sell what do you believe is the best approach for this deal:
    a. Cure the deficiency in exchange of the seller giving up a warranty deed and to secure the seller’s interest in the property with a 2nd to be paid when the house sells?
    (essentially taking the property subject to the existing mortgage. While this in theory could trigger the lender’s due on sale clause, given the short time frame to flip the house this seems like a negligible risk)
    b. Cure the deficiency in exchange for an option to purchase the property and record the option and have owner execute a lease agreement given me a right to the property?
  • Do both of these transactions require a three day recession period before they can be recorded?
    c. All cash deal to buy the property - financed with hard money at 70% LTV?

Also, what is a fair amount to offer the owner in a sale of this nature?