Hello all,
\nA 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<\/p>
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.<\/p>\n