All Forum Posts by: Vince P.

All, thank you for the thoughtful advice, it is much appreciated. Thus far, I have been in touch with the owner, but he is unwilling to sell to me at a loss. I have also been in touch with the bank, who is a local S&L. To date, they have been very unwilling to discuss a solution.

Myself and the other tenants have been putting our rent payments into an attorney escrow account for the last three months, and have met with the owner and lender together to discuss solutions. We supplied a formal list of issues that they agreed to fix, and signed it. Upon their signing, we released a portion of the funds we were withholding as a sign of good-faith. This was over 2 months ago, and they have done nothing since.

Our attorney thinks we need to push the court to appoint a reciever, who will manage the funds and the maintenance. That would be an improvement from our current situation, but I'm not sure if that would ultimately help or hurt my cause.

I own 2 other commercial properties and have a good relationship with my lender, and I have had preliminary discussions with them about financing. I've also done my homework on fair market value, etc. I've never been involved in a situation like this before, and am unsure why the lender is so unresponsive at this point. If I were on that bank's board, I'd be seeking a solution.

Appreciate everyone's comments, and open to any suggestions.

P NW, thanks for the insight. Assuming the building is clear of other liens and that she has clear title to the property, it looks like short sale would be the way to go. In this scenario however, someone would have to "lose". I'm positive that the owner will agree to sell it to me, as long as the bank is the one that "loses" here.

What is a reasonble percentage below present market value to bid for a property that's in this situain?

Justin, understood, and thanks. So if I'm able to get the seller to approve it, I can theoretically buy it, correct? Would the seller be responsible for the balance, or would the bank forgive it?

I have come upon an interesting opportunity, but I'm not sure if what I want to do is possible. I found a prospective investment property in NJ where I live, and the owner lives in California. She inherited the property about 18 months ago from a deceased relative, and has not made any morgage payments in over a year. She does not want to keep the property, and has gone so far as to call the bank and ask them to please take it (remember, no payments in over a year). However, the bank is reluctant to begin foreclosure proceedings and has been ignoring her. The house is also worth less than she owes. Is there a way for me to contact the bank and buy this at a discount before they eventually foreclose? Any help would be extremely appreciated.