Is there anything i can do with this?

Question

Here is the situation. The lady was forclosed on and had a lawsuit with fannie may, she lost the lawsuit and came to an agreement to purchase her home back for $166000. She needs a short term lender to come up with a down payment by monday and then has a month to come up with the rest of the amount (150000) so she can buy it back and sell it to the new buyer.She has a purchase agreement with a buyer to buy the house for $221000 already. Is there anything i can do to help her achieve this. She dose not want to lose all of her equity ($55000) she has but understands she wont get it all back. What to do? Or just pass?

Dev Horn · Answer

Daniel Barden - Hey man, this is not a clean deal with an obvious role (and compensation) for you as an investor.  If you are doing this to help this woman, that's great.  But if you are hoping to extract value for yourself, your time might be better spent on another opportunity.

Wish you the best!

Jon Holdman · Answer

Why did she contact you?  She has a buyer, so finding a buyer isn't necessary.  Is she looking to you for a loan or for help getting a loan?   Help in the mechanics of closing the deal?  More generally, what value do you add to the situation?  Find your value, and you'll find your path to getting paid.

Daniel Barden · Answer

Thanks for the help guys it was worth a shot see if I can do anything with it. If anything it was good practice in dealing with the seller.

Bill Gulley · Answer

Sometimes you can pair up an end buyer and someone in this situation, for both to buy the property, using a bridge loan and then at closing the owner sell thier interest with the last end buyer standing for the end loan. In this case, they don't know each other and I doubt with a Realtor involved they'd want to go through the deals, even if they could. The owner's attorney could get another buyer added, but I doubt there is time.

For her to get 55K she might want to see a bankruptcy attorney, like yesterday. The court can set it aside the foreclosure and allow a sale and she may have a homestead exemption to keep some money, payoff other debts and she can always change her mind before the court discharges, and reaffirm her debts which will help the credit issue.

There is nothing here for an investor to get involved with, it's too late in the game, IMO.

Well, unless someone with money, buys with her from the lender (could be back to back) and then they sell thier 1/2 interest to the end buyer, for part of her equity. Doubt you'll get a lender, it would be a partner in the deal. That's about it on this one. Good luck...  :)

J Scott · Answer

Probably not legally.  In this situation, you'd be a broker, and I assume you're not licensed as a broker...

This is more Bill Gulley's realm though...hopefully he'll chime in...

Daniel Barden · Answer

I asked those questions and this is what i got back.
Yes, there is a Realtor involved.The buyer is mortgaging the purchase of my house (conventional) with a down payment.Not sure who they are going thru but I can find out if you need the info.I don't know the buyers...they were brought in by the Realtor.If I can't obtain a loan by Monday, Fannie Mae will take the house and I get nothing.The buyers will not be buying the house.  Fannie Mae has nothing to do with me sellingthe house after or before I acquire the deed back. I don't have to sell my house to the present buyer.  If I need to arrange another deal Iwill do that if I can keep Fannied from taking it. If you can get a cash buyer so that I may keep equity I would be interested in learningmore about it.

Bill Gulley · Answer

Need waaay more info.

How did the end buyer find the property, is there a Realtor involved?

What's your involvment?

If the end buyer is "obtaining a loan" what contract to they use for the loan application?

Is there an attorney involved?

Does the past owner and end buyer know each other?

Any transactional lender will want to see the ability of the end buyer to buy. :)

Daniel Barden · Answer

What about for someone who has no other deals to work out? Just trying to gain some experience and maybe make a few bucks.

Daniel Barden · Answer

Then do a double close or something? This all would have to happen by cob on monday by the way....lol

Daniel Barden · Answer

If she dosent figure something out quick she will lose it all. Should i ask her to try to get out of the current contract and put it under contract and try to find a new buyer real quick there is 55000 in equity so there is room to work with.

Is there anything i can do with this?

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