I need help from the seasoned Investors in here.
I have a potential seller with great equity that will be willing to sell her house within a year, but until then, she wants me to help her solve, or guide her to the right direction with an issue she has with a Hard Money Lender. Will I be able to make money for my service?
Her scenario in a nut shell:
She's owned the house for 22 years and has 2 mortgages. In 2006, she borrowed 50K from a Hard Money Lender to help her run her business. The original agreement stated, she was not to pay any payments towards the 50K for 180 days. She then lost her job and the lender never attempted to collect any payments since 2006 and she had no payment schedule in place and did not know when,where,who to send payments to. About 2 months ago, she was late on her mortgages but is now current with her mortgage. Somehow, the private lender was aware of her being late on her mortgage and has decided to file an NOD and states she must pay 80K in order to avoid foreclosure. They have scared her to death with the possibility of foreclosing her home. She has called the broker she initially dealed with but they will not work with her in any way. Is this possible? what can she do? How can she get the Hard money Lender out of the way. Is this considered a 3rd mortgage?
I would think this would be considered a predatory lending and, if so, what can be done?
I would really like to help this lady out and possibly getting paid for my service.
Any advice and/or help will be much appreciated.