What to do when your lead is underwater on their mortgage

[Kirk Gore]

I just received my first call from my direct mail campaign. The lead is an out of state absentee owner who owns the house as a rental and is underwater on his mortgage. He bought the house in 2007 and said if he tried to sell it now he'd have to come out of pocket substantially. He said he's tired of dealing with the property and wants to get rid of it but doesn't know what to do. The house is currently rented with property management. He said he was planning on just renting the house out long term before he got my letter.

What options do I have to help him? Would this be a good candidate for something like a subject to deal or something similar or is this a dead end lead? Thanks!

[Larry Turowski]

@Kirk Gore If it cash flows well enough some investors might take it subject to, even under water. But this is dangerous and you and he should know what you are getting into before proceeding. Another possibility would be a sandwich lease. You could lease it long term eith right to sublet it.  If the difference between the two is big enough in your favor this may be of interest.  You'll likely need to makr him responsible for major repairs.  Or you could do a lease option the same way. Finally, you could try to do a short sale. I've found that the bank wants too much 90% of the time. But the 10% can make it worth it. However you'll need to be able to close yourself on the property.