Advice on a Short Sale / NJ

[Christopher Gable]

Hello All,

So I have been working hard on #bp90days through yellow letter marketing and driving for dollars. I've been on three appointments, the first two did not sign a contract when I met with them, however, I am working them through the follow-up. The third appointment is the one I needed some advice on. So after a short meeting with them at their house I get them to sign a contract, below are the details:

ARV: 300k

Contract: 112k

3 beds/2 Bath/Basement

Garage converted to office space

-House would need a complete gutting.

-Pool would need to be ripped out of the back.

-Pretty much everything needs to be replaced.

-Rough estimate of 80-100k in rehab

Anyway, they signed the contract under the assumption they owed 98k on the mortgage that they haven't paid on in two years. After some research, turns out they have been keeping some details from me. Mortgage company gave me the following info:

Interest-bearing principal balance:  $415,007.25

Non-interest bearing principal balance: $98,000.00

They are facing sheriffs auction soon and have managed to delay it once, with a possibility of delaying it two more times.

Any advice here would be great as I wasn't exactly planning for a soup sandwich like this for my first contract. Oh well, no time like the present to learn.

Thank you!

-Chris