"Pre-Pre" Foreclosure

Foreclosures, Short Sales, Tax Foreclosures
1

Howdy folks, I’m new to the board.

I have an acquaintence that’s about to walk from their property, as the wife lost her job, and they can’t afford their house payment any longer. They are current on their note now (believe it or not), but are planning to move out at the end of January.

Rather than suffer the consequences of a foreclosure or deed in lieu of, I thought they might want to consider doing a lease-purchase (they don’t want renters, and market rent wouldn’t cover their mrotgage payment).

The property is in good shape and needs virtually no repairs. They have no equity in the property (purchased the home new 3 years ago in a neighborhood where the production builder is still building out and offering huge incentives) and may even be upside down a bit. A foreclosure just sold (comparable to this property) across the street at a steep discount.

I thought if they could get some option money and someone to cover the monthly payment, they might get to sell the property in a couple of years and avoid foreclosure.

Any thoughts?

Thanks,
Joseph

2

Howdy SRES- Austin:

Sounds like Round Rock area. There are a lot of houses on the market, HUD, VA etc as well as other folks just like your friends trying to let the MLS sell it and they actually may even bring cash to the closing. Not as bad as the mid 80’s crisis but you know the saying : Its a recession if your neighbor is out of work and a depression if you lose your job.

There are buyers who would buy the property on a lease purchase be they investors or tenant/buyers. Some have good income but can not or do not want the trouble of getting a mortgage. Even paying a little each month may be better than a foreclosure and even a foreclosure is not the end of the world. My advice is always avoid BK if you have no equity or nothing to save. You can buy some time and maybe get caught up if the job market changes but a lot of time you are just postponing the foreclosure.

There are several options for your friends maybe they can pick one that is the least painful.

Hope this helps