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Posted by Michael Morrongiello on October 30, 2009 at 22:36:06:

In Reply to: AHH!!! I Need Help, Pronto!!! AHHHH!!!!!!!! posted by dontjustrent on October 29, 2009 at 14:18:17:

Hi Don't just...

This house is going BACK to the bank SOON if nothing gets done.

The Main questions;

1)Is the owner willing to walk away for what is owed or less (under a short sale arrangement)? or is he / she wanting some $$$ - apparently for equity they thought they had but no longer reall do have...?

2) What will this home easily rent for per month? I suspect it will be less < than the $3,300.00 that is required to meet the monthly PiTi payment not to also mention, vacancies, deffered maintenace and mainteance, management, expenses as well, etc.

3) IF the answer to # 2 above is that it will RENT for far LESS < than the $3,300.00 per month payment then its not a good rental home to keep as someone will have to feed that hungry alligator each month.

4)One way to deal with the negative cash flow is to attempt to find a possible TENNANT BUYER who might be willing to put down up front some CASH ($40K+/- lets say)- which will allow you to bring the existing loans current and put some $$ in your pocket. Then LEASE the home for the mortgage payment or slightly higer with an agreed upon purchase price given to them in the form of an option.

You then get to earn a little bit up front, possibly a little bit per month, and depending on the purchase price for the OPTION - a little bit later.

5)IF the Lease with Option won't work or ther is not enough time to find someone with the $$$ then is the seller receptive to a short sale offer and willng to allow that to fly with this bank?

Remember his credit will suffer with the Short sale but it will suffer less than with a FORECLOSURE.

NOTE:
Most lenders will do a BPO or appraisal of this property and if it has little in the way of flaws and will support $500K as its value - often the short sale lender will nto accept much LESS than 80% of that BPO or appraisal value (or $400K)

Does that leave you enough room to find a buyer at a premium above and beyond that price that can actually get a loan and CLOSE and will stand on the sidelines through the ordeal and literal "gauntlet" that describes the short sale process - I can't answer that for you...

Hope this helps sort it out a bit....

Warmly,
Michael Morrongiello

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