Are you in a position to buy the house? I do not mean now, but as this progress you are in the best position possible to take the property over before the foreclosure is eminent. This may be a great opportunity, especially if he is going to walk. I would wait it out. Prior to the court steps the owner can liquidate or in this case dump and in that window there is an opportunity to strike; you can approach the lender most probably with this guy’s approval. I would get ready do comps now and again just before the foreclosure, note any repairs, piece together articles of how housing is on the decline-Right off the bat you will have no agent that is a 6% reduction. You may have found a little screamer!!!
Based on a 650000 home *comp supported
Deduct 6% 39500.00
Deduct any repairs 1% 6500.00
Deduct 2-5% projected decline in housing lets say 2.5% 16250.00
= 587,750 Good area? Location? Schools?
If this unravels between now and Nov you will have the advantage because lenders are preparing to write off bad debt which will place you in an even better position. Or wait and after the auction approach the lender. Beware: if it is a good property the sharks will be there to meet you.
Good luck..
On the rent side negotiate explain since he is not paying a mortgage you are willing to give him a grand a month for rent, and it will be taken out of the deposit he is holding. That translates to 2 month plus you will get a couple of month until the property makes it to the auction…I would not go any where until you must and any landlord will appreciate you were in a situation you had no control over.
