Profile picture for Ativan

Buying my neighbor's house?

My neighbor came and told me they are "abandoning" their house.  They have been trying to sell it for 5 years.  I am not sure what there financial situation is.  Ill give you the quick dollar facts.

My salary 70K
Fiancees salary 50K
My house bought 155K.. I owe 143K, still.
Neighbor's house bought for 170K
Neighbor's owe 130k but cant sell it, cant even find someone to look at it.
The neighborhood is small new, with large lots, and great people.
I am wondering if I can get my fiancee to buy it her name on a short sale for 50K?
We live in the highest foreclosure section of the country, so I would imagine banks are desperate?  We dont have children or many expenses.
  • August 27 2011 - US
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Answers (5)

Have your neighbor talk with an agent and start the shortsale process. The process may go smoother since they have a buyer lined up already. Get pre approved for your funding and try to line everything up.
 
Good Luck.
  • August 27 2011
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Profile picture for shapiroamg
You also need to sell this to your neighbor. Short sale is better than abandoning. He can also stay in the home while the house is listed but he needs to communicate with his lender.
  • August 27 2011
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Short Sale is t not necessarily better than abandoning. Your neighbor should talk to an attorney or financial advisor about what the best route to go is. Depending on the investor of their mortgage, there may be government loan reduction programs that should be investigated first, such as HAFA or HAMP. Depending on the state, there may also be recourse for the deficiency if abandoned or short sold. Only when, and if, counsel tells them it is best to short sell, one should be pursued. Price on a short sale is generally close to what the rest of the distressed market will bear, not a lowball price. Your neighbor should have an experienced short sale agent or attorney negotiating the deal with the bank, definitely not attempt it themselves.

Good luck!
  • August 27 2011
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Profile picture for Sharon Lewis
You all, you and your neighbor need speak to a mortgage lender, a realtor for the house in questions, the bank that holds the mortgage to find out what is the best way to go about this. Why do you think its current 'value' is 50K.
Use professionals on this one.
  • August 27 2011
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Profile picture for Bev Blume

Please seek the advice of an attorney and a real estate professional.  In 2010 70% of people that were foreclosed on never sought options!  70% !!! There is help out there.
However, unless there are comparable sales in the area for $50k, ....... I don't think you'll be buying it for that.  The banks sell short sale property and REO property generally just under traditional value. 
Oh and be sure to talk to more than 1 real estate professional. There are so many different levels of experience out there!

  • August 27 2011
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