His house looks good on paper, fairly high sq. footage, fairly large lot – but the house itself is old and has major issues – like cracked foundation in multiple areas/leaking pipes etc.
I am hoping this gives him extra leverage with the bank? If someones looking at this place on paper – if they assumed the house was in excellent condition the loan due is still pretty high. Like the property itself is probably worth more than the house, but no way is the entire package anywhere worth what is owed. When bidders decide on these properties – do they just do a drive by and look at the facts on paper? I really don’t think someone would want to buy this house for for even half what the starting auction price will probably be(but i have no idea how these auctions work) – and even at that price my friend could have probably come up with the money + a premium via family to buy it if the bank would have just worked with him. I know it’s a complicated scenario, just wondering what your thoughts are.
