I am having a bundle of motivated sellers that are in the Preforeclosure status calling me stating they want to sell the home they own. The only thing is that I can’t see where there is any equity in it. I have a home the owner wants to unload for 60k below ARP. But it does not cover up the entire loan. I am wondering what anybody in that istuation would do. It does need repairs about 20K.
Also I just got a call from a lady that has a rental property in FL and is in a preforeclosure situatuin. She did a sub-2 with another investor and deeded him the mortgage. Well now for the last 6 months he has not paid that mortgage causing her to be in foreclosure. She owes 210,000 on the mortgage and it appears is only worth 201,000. Seema risky but I want to help these people as much as possible. I’m just lost and don’t know what to do. Any help would be great.
I’m sure thats exactly what he means. I’m know very little about them mechanics, but conceptually the idea is to approach the lender with a proposed lesser amount than what is owed. The lender may accept based on the fact that they will eventually take the loss if they have to forclose anyway and they would prefer to keep such properties off of their reports.