All Forum Posts by: Randy Fung

Hi Randy, 

I concur regarding the comments previously posted about your friend's bad credit. There is nothing that can be done about that. Only time will remove bad credit.

I agree with the other posts that your thoughts to help your friend are kind. However, purchasing property is a business - not a financial favor. Financial assistance to friends and family is a-whole-nother ballgame that I do not recommend mingling.

At this point, the comments seem to assess that the house needs to be short-saled. Have you posted the deal on the BP Marketplace? Maybe there are buyers/wholesalers that live near your friend that may be interested in the property? 

Your friend needs to sell- that is not a question. Do you need to be the one to buy it? No. Will you save their credit? No. Can you help your friend sell it, get out of the worse credit situation of having a foreclosure, and save yourself from the possible drama of mixing business with charity? Absolutely yes.

Best to you!

NO but possibly shorten from a new 10 years to the balance of the old 7.

You might be able to keep the Foreclosure off of her CR.

1999 days is 5 1/2 years! If there is no Court action the loan itself would possibly be removed after 7 years from the first delinquency that was never again paid current.

Her credit today is less than Zilch!  But a judgment of any kind would add a new negative that would likely remain for 10 years.

Here is where I don't know the part about how a short sale reports and whether it would also disappear at the 7 year mark. (From the original delinquency)

I would quickly talk to an experienced Bankruptcy attorney to help you and her work out some kind of deal. It will have to be fast if you are to stop the foreclosure. Chances are her credit is not likely to improve significantly over the next 10 years anyway. You might think that if she can keep control and ownership of the house to sell it as soon as possible to take care of whatever arrangements you can make over the existing mortgage. I would rather than use your money to bail her out financially buy a separate property that makes sense to you and get her into that property preferably a multi unit. Maybe offer her to be your manager. Trying to think fast here but you can do that on your own if you give yourself time. Anyway try talking to an experienced bankruptcy attorney and see if they cannot offer you a workable solution.

You do not want to offer to purchase this house at a price that would be lower than what you can get for it if you should find you also have to sell it. 

@Randy Fung you are quite a friend!  Her credit is toast.  Only time will heal that.  A short sale will help her in a huge way, as long as she isn't sued for the deficit balance. A short sale without re-course is the best that can happen for her.

==> Unfortunately, she got sue. She received foreclose summon from the court.

I wouldn't buy and re-rent to her, either. You may be the one without rent for 1999 days. How many years is that? Has she saved that money that would have gone to the mortgage? Should be $80k in her bank acct! You are kind. Kindness in this business (it is a business) can lead to huge financial losses. I would only buy her house as a short sale if 1) there is value for me (you pay less than FMV of $140k, 2) there isn't recourse on her from the bank, and 3) she moves. All those things happen and I would do it if I had the means. Good luck!

==> No I don't think she has the 80K in the bank. It was an investment property for her. She did not know what she was doing. It was negative cash flow for her that was why she stop paying the mortgage and left the house sitting empty.

Thank you for your suggestions Steve. 

Randy