1st DEAL what to do?

[Tyler H]

I just spoke with a friend yesterday. She has decided to let her house go. She bought this 3 years ago at 100% financed for $230K so definitely under water. It is in Bremerton, WA which is much less value than Seattle area. I think it is worth about $160K????????

What should I do next if I want to wholesale this? Please help...step by step advice would be great. I will follow it to the T's. Thanks in advance.

[James Harkness]

Tyler,

If the property is under water, then she owes more than what it is worth. How has she decided to "let her house go"? It seems to me as though if she wanted to get out from under the mortgage, she would have to do a short sale. She would need to get in touch with her mortgage company and talk to an asset manager about whether or not they would consider doing a short sale. That would be the first step.

Supposing that a short sale is a possibility, you would then have to make an offer on the property and have it accepted. You would need to do a double close, and use transactional funding, because the bank will most likely not allow you to use a wholesale contract. They are going to look at you trying to take a cut of the money, and not allow it since there would be deficiency debt.