I received a call from a novice investor last night and he gave me a nightmare of a story. It seems that he is deep doo-doo and he wants to see IF I can help him.
He bought this home from a Man who had just gone through a divorce about a year ago and he signed a 5-year option contract. At the time the house payments where current but the ex-wife, no children, was still living in the house and at first she agreed to be out within 15 days. Well 15 days went by and she still didn’t move, he constantly was going by and trying to be nice to her but offering to help as much as he could to get her out. He still needed to do some work on the house and was getting desperate. Any way make a long story short it took 45 days to finally get her out.
He had to make 1 payment and the ex-husband could not make any payments so he was looking at having to make another payment when an elderly couple came along and rented the house for just under what the mortgage payment was. Now being 1 payment behind and in a negative cash flow situation he’s in trouble. At first the couple was paying on time and he thought he would be able to get caught up but then the couple started to be late and later now the house is in foreclosure and there are lawyers telling the elderly couple that they do not need to be paying the investor because he too is in default.
He got someone to help him start a short sale and the original owner has cooperated with him to get this done, but as you probably know this takes time. Now the elderly couple will not answer there phone and will not open the door to him and have not paid anything in 3 months.
What can be done, is there any help for the guy?
Please give me any suggestions that I may be able help this novice.
"It's not what happens to you that determines how far you will go in life,
it is how you handle what happens to you.