Borrower about to loose house - Creative Financing Ideas Needed

[Bryan Miller]

So I received a call for help on this scenario.   Trying to figure out how it could work. 

Borrower faces foreclosure sale next week.  He needs $19,000 to bring his first position loan current.   He is living in the house.   He owes about $178k on a 30 year fixed at 3.74%  and reports there are no other loans or liens on the property.   Approximate value of the home is $800k.   Houses in neighborhood in central California where houses are selling for $650k- $1M.    

He doesn't want to sell the house.  I'm not a registered lender so max I could charge is 10%, so the risks are definitely not worth the reward, but maybe we could do a joint venture or figure out a way for me to get paid?   He is willing to payout a considerable amount as he is about to loose $600k in equity.   Maybe he gives me a quick claim deed, that I don't file, we do a wrap, and he buys me out in 1 year?   Or he employs me to do some consulting work for him, and secures the amount due with the house?   

He ultimately wants to keep the house, and not repurchase it because he is grandfathered in with very low property taxes.  

Time is of the essence.  Ideas? 

[Wayne Brooks]

@Bryan Miller First of all, it's a Quit Claim Deed.  Secondly, depending on your state laws (and left coast consumer laws won't help you)  the old "hold a QCD to avoid having to foreclose" usually won't stand up in court.....referred to as "circumventing foreclosure laws".

I'm sure your market there is competitive, so the worst he'd probably do at foreclosure is the property sells for $600-$700k and he walks with $400-$500k cash.....probably much better than you'll do for him.