sent out a bunch of mailers to homes I got off of 4closurealert.com and received a call from a gentelmen two days after sending them out!
Here's the down low:
Owner knew he was headed for financial trouble due to economy and business going bad(nightclub owner) so he reached out to lender who told him the bank couldn't help because all of his payments were being made. So he didn't make payments for three months and filed paperwork with lender to have mortgage reduced. He was outside of the bracket by $100 so he filed additional papers with lender to see if that would help. All of this took bout 3 months so he's 6-7 behind on payments at that point. He's made on payment to lender in about a year and it still hasn't gone to complete foreclosure yet.
-He is $11,295 behind on payments
-Payoff was 118k but now 133k with penalties and fees for not paying mortgage
-Had two mortgages on home but the second he apparently will not be penalized for or held accountable for...he says...don't know why? Anyone?
-Totalviewrealestate.com says home value is about 136k
-1st mortgage payment is just under 700/mo. both loans were just over $1200/mo.
- He wants to stay in home but now is to far behind on payments and can't make up over 11k in back payments.
-Now that his 2nd loan isn't an issue he wants to stay in his home if possible because he can cover 700/mo.
-He understands I need to make money but REALLY wants me to let him stay in the home if the backpayments are made..don't know about that!!
Should I purchase subject to or lease option?? I keep finding homes with owners that need help but their monthly payment is either to high or they owe to much in back payments!! This sucks because its hard to find someone who can pay down over 11k or pay close to 2k in monthly payments.
WHAT SHOULD I DO? HOW CAN I MAKE THIS A WIN-WIN AND SHOULD I FIND A WAY TO LET HIM STAY IN HIS HOUSE OR MOVE OUT FOR TWO YEARS BUT HAVE THE OPTION TO COME BACK ONCE THINGS ARE BACK TO NORMAL FROM HIM.
From my view he will have to move out in order to give me a chance to make up his back payments. I could flip it to an investor but then it would be a short sale and hurt his credit for two years and I wanna make it a win win. WHAT TO DO WHAT TO DO??