Re: I believe I understand
Posted by Cliff on November 29, 2008 at 12:00:59:
In Reply to: Re: Sorry Dave
Posted by NJD on November 29, 2008 at 06:02:43:
Thanks Dave - I believe you're saying that you would offer the second a discounted purchase amount for the note since they are at risk because the value of the property has declined and the borrower is considering bankruptcy and possibly a foreclosure with the senior lien holder wherein the second could get wiped out.
And that you would use his parents as your funding source and then assign the note to them.
I would hope also that you would be compensated for your time and the negotiation skills necessary to purchase the note from the lender at substantially less than face value.
I believe this would be a good path to pursue for Michael if he is able to bring the first current and then remain current with all his other obligations, including making a payment to his parents on the second, and I most genuinely hope he can.
I believe you are offering a good alternative to his situation and I hope, it is successful, he is able to remain in his house, he is able to get his life back to normal, and that he is able to put this all behind him.
You have a good plan 'A'. If you care to, you and Michael can keep me in your back pocket for a plan 'B'.
If plan 'A' fails or even if plan 'A' is successful and Michael just wants to be rid of the financial burden of the property and at the same time save his equity, I would be willing to make him a full price offer.
And because I am not a 'flipper', but am in this for the long haul and use private funding, I am not concerned that the property value is going to decline further. Given time, this real estate and lending nightmare will end and values will return.
I do respectively disagree with you on just one point. I do believe that what I suggested is also “an alternative, mutually beneficial, non foreclosure alternate solution” for someone who is attempting unsuccessfully to sell their house in this market for whatever reason. And Michael stated that he had been unsuccessful for 5 months. Of course I want him to remain there if he that is what he wants and if he can afford it.
Anyway, you’re on the right track, keep up the good work.
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