Pre-foreclosure Negative Equity

[Cyrus Dixon]

I have a motivated seller that owes $220K in a area where homes sale for $110 max, the house just entered pre-foreclosure.

Her husband put a 2nd mortgage on the property to help with medical bills and passed away shortly there after. She owes $9k to get it out of pre-foreclosure status.

She’s not looking to make anything on the property just doesn’t want it to impact her credit.

Looking for all suggestions.

[Kwame Johnson]

@Cyrus Dixon Its possible to buy subject to the existing debt with the $9K reinstatement and rent it. This would all depend on the mortgage payment and rental rates in the area. Also, because the mortgage stays in his/her name their credit profile improves as you make the payment each and every month.