what should I do

I have a seller that needs to sell her home by april 5th or her home will be auctioned off.She is working with a realtor and her home has been on the market for about 65 days.The CMA’S are at Max $120,000 , Average $107,000 & Min $103,000. She’s asking $105,000 and her house is actually a nice looking house with very little repair work. To pay-off her loan is $92,000 she didn’t sound very motivated to sell fer home at first,but I just went ahead and made her an offer to see what her reaction was and my offer to her was $63,000. She then asked me “So am I gonna have to come up with the rest of the money to pay the loan off” and I just froze. I mean…my mind went blank and I didn’t know what to say because I couldn’t remember what happens afte that so I told her I’d give her a call back lol.She has been calling me so I’m kinda thinking she is accepting my offer otherwise she wouldn’t be calling me.

So…what should I do?
A realtor/wholesaler told me that she doesn’t like to work with people facing foreclosure because it’s just too much of a hastle,but if this is a good deal and I can make it happen then I don’t care about the hastle IF it’s possible.Can someone help me, should I pass or act? Thanks!

Jo, it’s a deal alright. Anytime you can get a property for <60% FMV. Hell yes.

If the lender accepts the short-sale offer at $63k, then that is the pay-off, the rest is forgiven.

If you read enough of these posts, you’ll hear what the lender does w/ the amount they lose. They issue a 1099 to the IRS for $30k or so for the homeowner, like a chartiable gift. Supposedly the homeowner has to declare that as income. The way around that is by filling out a 982 form with the IRS which claims that the homeowner is insolvent, getting around that $30k.

You can ask the lender to not file a deficiency note against the homeowner, due to the homeowner being insolvent; sometimes they will, sometimes they won’t.

Overall, once the lender accepts the ss pay-off, the homeowner or investor are no longer responsible for the remainder. The lender just writes it off their books as a loss.

Hope that helps,



If you’re talking about a short sale, my guess is that you’re too late. The bank has very little to lose by taking this to auction. They will probably be able to get more than $63,000 at auction, which will be better for the bank and the homeowner.

I thought you were talking about the owner coming up with $29,000 to pay the difference between what you are willing to pay and the loan amount. While this is possible, it is EXTREMELY unlikely. If the homeowner had $29,000 cash, she wouldn’t be behind on her payments.

Personally, I’d pass on this deal because I would consider it a waste of time. On the other hand, if you can get it for $63K (free from all other liens), you’ll have done great! I just don’t think it will happen.

Good Luck,


The best I can see you doing on this is $92k with the amount of time you have. That’s really no deal at all, its nearly FMV and with softening prices may be exactly FMV as the comps might be a little behind the current values. I would pass on this one and if you have the cash maybe show up at the auction next week and try to pick it up for your max offer price of $63k. Bid up to that and stop.