Bizarre Foreclosure Scenario
Hello all, A friend of a family’s acquaintance is under water in his mortgage (sunset park). His original mortgage was for 679k, hes at 9.875% apr and hasnt paid in 3 years. He currently owes 802k. Anyhow, my dads friend friend lives in the house that I am talking about. The tenant has been living…
Hello all,
A friend of a family’s acquaintance is under water in his mortgage (sunset park). His original mortgage was for 679k, hes at 9.875% apr and hasnt paid in 3 years. He currently owes 802k. Anyhow, my dads friend friend lives in the house that I am talking about. The tenant has been living there for 2 years without paying rent because the owner has gone AWOL. The renter received a bunch of documents about the house from CitiBank. They have told him to pick up the house before its foreclosed. The renter has no interest in owning it. The house is a complete mess. The renter gave my dad all the documents the bank sent him and asked him if he was interested in it. I am actually interested in this property if its dirt cheap. I thought of a few scenarios:
1- buy the property with my brother in law and brother, destroy it and sit on the property for years until a developer wants it (what are the tax implications for just having a lot)
2-buying it with them and rehabing it (any govt assistance in this? maybe the neighborhood rehab program?3
3-destroy the property and use it as a parking space until a developer wants it
It seems like the bank really wants someone paying them. Chase Home Estimator and Zillow valued it at around 450-550k. The house is also very small around 1,300 sf.
Ive got on hand about 200 pages of documents on this house. How would anyone go about this situation?
[ offer them 50k ?? :)]
There’s so much for sale cheap right now that’s income producing, why would you want to buy expensive land and make nothing until you sell it years from now?
If you believe you can buy it cheaply, buy it, make it livable, and sell it in five or ten years after the market has hopefully rebounded.
Goodness gracious! This sounds like a real mess! You’re initial post is rather amusing…don’t be offended.
You certainly will not get the property for $50,000. Trying to get info from Citimortgage (especially when you’re NOT a concerned individual) is…well, you might as well not even bother! 😉 at all…
And you’re not tearing anything down. Just simmer down and give your flights of fancy a rest for now. If anything we read from some of the doom-and-gloom posters comes to pass, you’ll be able to pick up a house for “half off peak comp”. From that formula, it sounds like this house would go for $300,000 or so.
Good luck!!!
Rule of thumb that never fails:
If it looks to good to be true, it is.
stay away…
ive called citibank this morning nothing… no one knows anything. i check NYC DOB and there’s a bunch of violations (recent ones)… the latest illegal conversion… “EXTENSION ADDED TO FRONT OF HOME WITHOUT PERMIT VIO ISSUED”
when i went by the house yesterday that “conversion” looked like a shack built with cinder blocks and some paint!
ive tried contacting one of the lawyers listed in the documents… nada!
wouldn’t you have issues with the city if you tried to run a parking lot there? also, I wonder if there is a special permit process for a demolition. wouldn’t you have to submit some kind of plan for the lot? I don’t think the city wants more vacant lots around.
You can’t destroy the property if you obtain a mortgage on it. When you sign a mortgage you also sign and agree to maintain the property. If you buy it free and clear go right ahead and destroy it if you want.
If you have a mortgage and knock down the property the bank will call the loan due and you will need to pay off the mortgage at that time.
Mortgage fraud? Eman when was the last time you heard of a mortgage broker going to jail for inflating the value of a home or a client for buying a home at an over inflated price? Welcome to the toxic acid ninja bubble market. It is just starting to hit the fan in Brooklyn. The best is yet to come as far as home prices are concerned. Jut wait another 6 months
sounds like a mortgage fraud scenario…do not even think about getting involved