This was a sad story that worked out verywell. I actually used to live in this condocomplex when I started out in real estateso I had a soft spot for this property. The seller was very nice, well educated andnever missed a payment. However, her mother became very ill and the seller had to go back home to Colorado to care for her mother. This meant she had tosell her condo in Chicago and quit her job. In a down market it’s never a goodtime to sell, especially if you have no choice. This seller is a prime candidate for a short sale.Again, an investor came in and bought the unit for $154,000. The investor purchased the property at a very competitive price, which allowed him to resellthe property for a profit. It was in the seller’s best interest to work with him sincethere was a high rate of first time buyer’s in this area, especially in this complex,where most of the buyers consisted of single professionals. We knew that theend buyer of this property would not have the funds to settle out the HELOC onthis deal.The 1
lien only allowed $3,000 to be paid to the 2
lien. The 2
lien was alocal bank in the area who demanded more money that the traditional $0.10-$0.20 on the dollar that most HELOC’s take. The seller would have had to file for bankruptcy if she did not get settled accounts on her loans. The investor endedup giving the 2
an additional $9,000 at closing to obtain a settlement on behalf of the seller. The seller was able to walk away liability free on this and she couldcare less what the house sold for. She is now in Colorado helping her family andmoving on with her life.