Group,
A relative of mine has come upon hard times, and is having trouble keeping up with her mortgage payments. She is probably about 60-90 days delinquent, with little hope of being able to afford the payments even if the lender is able to work out a payment plan. Ideally, she just needs to be out of the property. All #'s are approximations until I receive more details.
Principal balance of loan: $190,000
Estimated Repairs: $30,000-40,000
ARV: $235,000 - $245,000
Houses on the market are not moving very quickly, and with #'s like these, it doesn't leave much interest for an investor. Given the state of disrepair, the fact that she's not positioned to get herself caught up in the near future, and the stagnant real estate market, it sounded to me like a good short sale deal. Thoughts?
I was considering referring her to an investor/broker who specializes in short sales, who can get a short sale approved and sell the home to another investor. I don't have the liquid cash to purchase it myself, and even if I did, I don't really want to hold property in NJ right now. The option I was considering was to pass it along to another investor in my REIA who may see potential.
Do you see any other options? I'm more concerned with helping than making a profit, but I must say that I am also curious as to how I could work a deal like this in the future if I come across one.
Thanks