Building My Real Estate Empire

Question from Jay… Hi. What’s the best way to do a short sale before it goes into foreclosure to try to make a profit? My girl friend filed for bankruptcy, and now the case is closed. The lawyer said we can do what ever we want with it. Well I have several people interested in the property. So I’m thinking since the house still in my girl friends name… what’s the best way of doing this and pocket some $$$… The only problem I can’t get by is the mortgage company that has the biggest loan wants her bank statements and last years income tax information etc. Oh the good news, I have a buyer that has cash!!! Please help, Jay

Answer… Jay Thanks for the question! There is a lot going on here, so I will give you just a quick answer. There is quite a bit to it. Since she filed bankruptcy she no longer has any obligation to repay the debt. And the attorney is correct. It is still her house until the foreclosure happens, so she can sell it. The problem you may run into is that the bank will want whatever money that they are owed, or as much of it as they can get. Since it is a short sale, and she filed for bankruptcy, they will generally not let her get any of the proceeds from the sale. The reason they are asking her for bank statements and tax returns, is to prove that she has no ability to repay the loan and that the lenders best option is to approve the short sale and take what money they can get.

Eric Foster
www.EmpireHoldingsInc.com
www.BuildingMyRealEstateEmpire.com