pre-foreclosure

[Wilmington]

I have a question for any of you guru's please advice...
I have a lady in foreclosure"pre" her loan isn't assumable.  She owes 77k she is behind 6 months...her monthly payment is 821.00.  She is willing to do whatever to save her credit.  The comps shows that home been selling between 85k-89k.  This is a rental property for her.  The home needs about 7k in repairs, no 2nd mortg. no liens.  How could this be a win win?  Sale date is 4/26/05.  

 ::)Thanks in advance!

[WilsonTaylor]

Wilmington,

I would recommend that you let this one go.  There is no equity in the property.  If you bought the property sub2 (I know that you said the property was not assumable), caught up the back payments, and fixed the problems with the property (77k + 5k +7k) you will have 89k in the property that is worth 87 to 89k and that is without considering the carrying costs.  If you sell for 90% of FMV to get it to sell quickly, you will lose at least 8k on the deal.  Find another deal.  Remember that you need to buy for not more than 75% of FMV minus costs of repair.  In this case, you should not pay more than 59k for the property in order to expect to make a profit on the property.

Wilson

[Wilmington]

Wilson,

Thanks alot !  I'll let this one go.

Wilmington

[Sequan]

Did you consider doing a Short Sale?

[Wilmington]

If the loan isn't consumable I thought you couldn't do a short sale?  Please reply.

Thanks

[Sequan]

Did you mean assumable?

It doesn't matter if is or not with a short sale.

What type of loan is it FHA, VA, CONV?

[Wilmington]

it's FHA.  I also have one with a VA loan.  Please reply.  Sorry for typo...lol

[shaamrock]

it doesnt matter you can create equity by doing a short sale even at 80% of 77,000 thats 61,000 -85000 now you have 24,000 worth of equity.