buy out before foreclosure

[Kyle Richter]

I have a few rentals, nothing extreamly profitable, but none the less..income and equity. In my area were just not seeing any great real estate opertunities.
But, I have a friend that has a house that him and his wife have not been able to pay the mortgage for over a year....they are certain to loose the house. Would a bank accept a reduced offer in a situation like this? or would they rather just move forward with the forecloseure? Any advice?

[Jon Holdman]

Its a positive toward getting a short sale done that its their primary residence.

Do they have a hardship? Job loss? Medical bills? Something.

Do they have any assets?

If you can show they have no assets and no income, the bank may be willing to work a short sale. If the bank thinks they can come after your friend for the shortage, they may be more interested in going to foreclosure and seeking a deficiency judgment.

But, let me get this right. They haven't paid in a year but they remodeled a bathroom? How did they pay for that? Or did they? If the contractor filed a lien, that's another thing for you to deal with.