Need A Financial Wiz To Answer This Mortgage Investment Question?
Last year we listed our home on the market for $475k but didn’t sell. The market value of our home is now worth approx $400k (declining everyday). We know that right now is NOT a good time to sell. (We don’t Have to either). But we would like to Buy a home since it is a good time to buy. (And we need the space). We owe $125k on our mortgage.
My parents are seeking to invest money in the real estate market. Coincidentally they have approx $125k to invest in a rental property. (They are looking in Texas because it is cheaper than California).
If it is a wise investment for both parties, I would like to be partners on my home. I would need SOME money (50k?) in my pocket to buy another home.
Ideally:
Both parties would have a monthly positive cash flow on the rental. This place could rent for $2200/month.And there is an HOA of $350/month.
Both parties would gain equity when we all do decide to sell.
Any Advice?
How Come Mortgage Lenders Don’t Want Foreclosure?
I am refering to if the loan thats due is worth significantly less than the value of the property. So in that case, why would a lender not want to sell this property and gain all of the profits from the sale?
Like in Texas, if the borrower misses 3 months of payments. Property is worth $300,000. Missed payments, plus the entire loan is $250,000. So why would a lender not want to either sell this property at a tax deed auction or sell it afterwards if their were no bidders? Since they would gain all the profits from the property either way.
If they would not want to go through this foreclosure process given my example given, then would it be possible for me to buy their loan from the lender and have the property go into foreclosure so I can reap the profits?
Tell me what I am not understanding please.