Renters want to own but....... (loan, foreclosure, loan, property)

[Mike78613]

Hey guys maybe someone can help me out.


A friend of mine is trying to sell his home to his renters due to the fact he has decided to let it go to Foreclosure. I am trying to help him out and finding ways to get his home sold to the current renters, which they want to buy it.

The renters cannot get a loan by FHA or Conventional since they had recently did a bankruptcy from my understanding (less then a year ago).

Is there any program that would help / assist the leasing residents to buy the home and not rent it? Maybe some kind of closing that can be done and maybe the renters can piggy back the original mortgage? Maybe some type of 3rd party of some kind to assure all transactions will be completed?


Thanks

[mortimer]

Originally Posted by Mike78613

... has decided to let it go to Foreclosure. ...

Is the house under water?
It must be or he would just sell it.

Originally Posted by Mike78613

... The renters cannot get a loan ...
... they had recently did a bankruptcy ...

If someone just declared bankruptcy then they are not
ready to buy a house. They need to save up a down
payment and they have not had time to do this.

As you might recall, the reason that the housing bubble happened
at all was because of the general philosophy that everyone is
"entitlled" to "own" their own home. That is false.

If the rent does not cover the mortgage payments then the
price of the house is too high and there is no way to make
this transaction work.

If we had a normal, functioning banking industry, the bank would
want to avoid foreclosure and lower the payments to keep from
having to own that property. Since the banks no longer function
as banks anymore, they make more money servicing a foreclosure
than working it out with the mortgage payer.

The US government bailed them out. Now we are all hosed.
( ... but hey, the bankers got their bonuses ... )