Hello all. I’ve got a question for some of you more savvy folks…I’ve spoken to a woman whose house is going to auction next week, and she’s in pretty serious denial about it. She wants full market value and wants to stay in the house, but it’s nearly fully financed. And what equity there is, she wants. She’s nice, and I would like to help her, but there’s not much obvious room for a deal for me. I’ve heard about recasting a loan as a strategy to keep someone in their house. She can make current payments. If I talk with her about it, is there a way for me to make a little $ too?
Howdy Fairlead:
She can not get full retail and stay in the house unless you buy it and lease purchase or rent it back to her. These type deals are done but usually the investor gets some equity. I know of some that will pay retail and hope for 50% of future appreciation. To me this is just gambling and especially with the existing owner as a tenant.
The loan can be restructured usually the debtor needs to pay some cash to the lender. Mine wanted 40% of the arrears to restructure. I only see you collecting a consulting fee from her for helping her with this. You can also direct her to some of the debt counseling agencies that may be better at this type help and you concentrate on finding a better deal.
Thanks for the info. That’s what I figured, too. I’m just hoping her denial doesn’t carry her right to auction day. :-\