Sheriff Sale--Question...

[ryanshana]

Ok I hope that I do not make this a very long story!

Ok pre-story my mom passed away and left my dad a large life insurance policy.

Well my dad's friend did mortgages and offered my dad to be the "bank" for this one guy. It was supposed to be an investment. And the "borrower" would pay my father directly......I'm sure you can see where this is going.

Of course the guy hasn't paid in almost 1 1/2 years. I think he sent my dad 2 payments and both were late.

My dad has a lawyer and gave the "borrower" a notice of foreclosure a while ago (I forget the exact time). Well now the lawyer is saying they are going to do a sheriff sale.

So here is my question. The loan amount was about 85K the house is valued at 125k.

What are the chances that my dad isn't going to get the 85k that he shelled out in the first place.

Yes, he (we) realize this was probably about the dumbest thing he could have ever done. I was just wondering if anyone knew anything about sheriff sales.

Thanks

 

[tinatark]

Chances are not likely your dad will recoup his investment at the sale, he needs to get legal advice, but I think his best option is to "buy" it at sale (unless another bidder is there with a decent offer)... then sell it outright for fair market value.