Nogotiating price with bank on pre-forclosure

[Corey Frank]

Hello everyone! I would just like to start by saying I am brand new at REI and would very much appreciate any feedback on this matter. I have a friend who in the last year has been laid off and moved to his home state 1000 miles away. He has left behind a property in which he has zero to negative equity in. I have not asked him directly about this property but after doing some research and knowing him pretty well I believe he is several months behind on his mortgage payments and taxes, possibly soon to be foreclosed on. It was bought at a market high, for asking price, in rough shape. He owes $150,000 on this property and I believe ARV will not equal much more then that. I could easily stick $40,000 to $50,000 into the house between siding, a new ac unit, hvac unit and everything else. My goal here is to help my friend get out of this house that I know he can not afford but at the same time I will need to get this house for much cheaper then what he owes to make any type of return or break even for that matter. My questions are is it likely if I get into contact with the mortgage holder, I will be able to buy the house at a price that will give me any return and get my friend out of the debt or will they laugh at me, let it go into foreclosure and send it to auction? What steps do I need to take? Thank you very much for any information!

[Thomas S.]

I would strongly advise you let it go to forclosure and attempt to buy at that point in time.

Your goal should be to help yourself not your friend. Your friends problem is not your problem.

Concentrate on getting the property at the lowest possible cost and cut your friend lose.