Got a Situation..

**Brain** · 10-03-2009, 11:17 PM

My brother has a townhouse/condo, he just re-financed it, he is on a 30year plan. He is paying a lot monthly, he has other things to pay too, and he just couldn't save anything...

I know maybe some of you are thinking, he buys things he can't afford and uses his credit cards... But that's not true, all our cars are beat-up and paid for, he is hard-labor working man, and some of his income went towards our families.

We help each other but its not enough. We saw another Condo/Townhouse for sale, its the exact same type/model and this condo is only going for $22,500

3br, 1.5 bath, everything is remodeled, ready-to-move-in condition, 2 stories, partly finished basement..... like i said its the exact same type of townhouse/condo we currently living in right now.

So my brother's condo is $80,000, and this other condo which is like a mile away from ours, is going for $22,500 (the owner is selling this house, i spoke to him, no agents)

Please tell me if these options are appropriate in this situation, I am "unrepresented" I have no agent:

1) We want to give up our current condo to foreclosure. Before all that, I could get this new condo under my name ($22.5k), I do have a very flexible downpayment, $10,000 is what I am willing to put down. But the catch is, I do not have a history of income for the past 2yrs, I have been in school. The cash that I have right now, are from my savings since I was in highschool. I have traded many things phones and etc to save this money and from the previous jobs I had 2-3yrs ago. I just started using a credit card to build my credit, which was like 2 weeks ago.

I have no history of owning a car, everything is under my bros name, even insurance and phones.

I heard that my brother can be my co-signer then after when the sale is closed. He would give up his condo to foreclosure, and move in with my condo...

Now is there any penalty for foreclosure? Is he going to be paying anything for foreclosing a house? I heard theres a tax bill penalty?

Anyone's opinion are greatly appreciated!

I live in Michigan btw.

**Investor101** · 10-03-2009, 11:54 PM

What I would do is instead of losing the house to foreclosure, is try and rent the condo out to cover the mortage. Then you need to find out what's the Fair Market Value for condo in your area. And try to sale the condo for (fmv). A foreclosure will be on your credit for 7years so you really don't want too do that if possible. You can alway try to give the condo back to the bank, or find a private money lender. There are a couple of different option you can take.

**Greg** · 10-05-2009, 06:31 AM

Before you do anything you need to talk to a lender to see if you or your brother will qualify for a loan.

Your lender, get somebody local, should be able to tell you how to handle the down payment. You might have to gift the down payment to your brother if he is the only one who qualifies for a loan.