Lemme ask you something. (Real life karma/ money)

[CO B-man]

Say you knew someone that was going to lose their home and could possibly help them. You went through every option, bank, etc, that you could think of and no one could help you or them because of their status, income type, etc. You found a way to help them and keep their house, but it will cost them 10% of their outstanding loan amount and a payment rate of 13% without a prepayment penalty. Would you feel good doing this?

BTW, it is a $1.1M loan and they stand to lose $750K in equity if the bank takes the house.

I would say the owner is not very smart because they could re-finance and and use some of the equity in their house to get them back on track but if they were my friends I would totally help them. Personally I think I would feel like shit doing that to them when you could present them with an option that would save them. When you have that much equity in a house worth that much you really do not need to be worried. Many banks would hook them up fast. I have done much research in real estate. I and friends have dabbled and made out quite well just need to get serious about it now. You should have three business licenses at least in order to divert capital gains. I am not gonna tell anyone how figure it out I did not invent it.

 

[CO B-man]

So they have 750K equity in a 1.1M home?

Why not have a fire sale, sell it for 900K, they can keep 550K of it and buy a condo.

definately one good option. Any equity is better than no equity and any equity is better than a foreclosure on their record

 

[CO B-man]

that's how I was thinking.

If it was a friend, I'd take out a 350K loan in my name, pay off the outstanding debt on the home, and go to a lawyer and have my friend sign me over 51% ownership in the home, with a contigency that I would give him the right to buy out my portion at any time (basically once he got his credit back).

If he defaults on a loan under your name then no way go after all the equity. He then gets in default with you not the bank they are under contract with you. You still need to make the payments or then your credit will get screwed

 

[musclemom]

In terms of "life karma," if they asked for your help and you've found a way to do it that is fair/beneficial to the homeowner (as in, you're not taking advantage of an already bad situation) then you are not a vulture.

It comes down to the question of whether you are profiting from someone else's misfortune.

 

[jafo]

You know lenders that will do a stated million dollar plus deal with no assets when the loan is in default? I found one that would do it for less, but they had to pay for 6 months or it would cost another $75K.

why dont you get a hard money Band-Aid type loan ....they will do it as a 2nd or even a 3rd...just borrower the amount needed make the loan current (get it out of foreclosure) and a few months padding ...most hard money lenders will go as high as 80% CLTV ...if they owe 20K then borrower 50K get caught up ...work on the credit and money problems then you could refi them into a more traditional loan in 6 months to a year ...I know a hard money lender that will fund in 5 days and charge 10% but 10% of 50k is much better than 100k in fees ...it will have a 15% rate on it but they get caught up ...maybe buy time to sell it right (not a fire sale) or get back on there feet and get a good loan

 

[ZKaudio]

1.1mil in Utah? better be in deer valley or I'm calling bs lol.

 

[bran987]

thread has now reached the point of diminishing returns.

 

[bw1]

thread has now reached the point of diminishing returns.

Yes, there's not many options here because of time. I think there down to these.

1) Do nothing and loose the house.
2) Forebearance or Loan modification with the first.
3) Hard Money Loan.

 

[ZKaudio]

burn it down!

 

[bw1]

burn it down!

Damn! That's it...I forgot about that one...K