Q. Seller thinks house will appraise for 380k. Seller is asking 318k for it. Seller owes 300k on it. Seller will be going into FORECLOSURE ON DEC. 31, 2004. 3000 PITI. house is 3 years old and is 3100 sq. feet
What do I do?
A. I would offer to purchase for $300k subject to the exiting loan of $300k. In other words, leave that loan in place. They are about to lose it all anyway. They should be very motivated to do anything to save their credit and not have a foreclosure on their record.
You need to move quickly. Find out how much they are behind on their mortgage. In other words, how much money would it take to cure the loan - make it good again. If that number is a number you can pay, then just pay the amount and purchase the property. If you are not pleased with that
number, you may want to work with the sellers and request forbearance from the mortgage company. A forbearance is where the mortgage company takes the payments and fees that have not been paid over the last few months and spread it out over the next 6-18 months.
Use the subject to checklist that can be found in the Downloads Section of our Member Forum.
It sounds like a pretty good deal - go for it!!
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