Foreclosure Investment Opportunity Assistance Needed

[Jahmal James]

Hi BiggerPocket Investors,

Have a minor situation, currently have a homeowner in foreclosure in the Washington DC area that is behind in payments approx $100k and the current balance on the remaining loan is $210k totaling $310k in payoff balance with the bank. The house is worth $540k to $575k, unfortunately I would be using hard money to fund but as you know most HML use the 65% LTV ratio which $351k (using $540k as ARV). The house would need approx $100k worth Reno, so that would bring me to $410k in purchase and Reno cost. So I am wondering if any of you all had any thoughts or experience working a short sale, directly with the bank, something, anything? Could really use your help with ideas, if any.

Thanks ahead of time for any advice or recommendations you may have.  

[Chris Seveney]

Jahmal James as Wayne Brooks noted the bank would not be involved as if it's worth $540k as long as the bank gets its $310k out of the sale the lien is satisfied - if you were trying to buy it for less than what the bank is owed don't waste your time as the bank would rather foreclose and get their full cash payoff since the property has substantial equity