Two questions
1. Homeowner Relief
In 200words, explain how a deed in lieu of foreclosure differs from a short sale or foreclosure? If you were advising a colleague that was struggling to keep current on payments which would you suggest? Would your recommendation change if you were an employee of the bank?
2. Real Estate Financing
In 200words, respond to the following problem: Mr. Smith acquired a property consisting of 1 acre of land and a two-story building five years ago for $100,000. He also obtained an $80,000 mortgage loan from ACE Bank to provide financing to complete the purchase. This year, Mr. Smith constructed another building on the property with his own funds at a cost of $20,000. Mr. Smith has decided after completing the building to approach Duce Bank to borrow and mortgage the new building with a $16,000 loan. Is Duce Bank likely to provide the $16,000 in financing? What other options may Mr. Smith have to consider? Make sure to be not only creative in your alternatives but also detailed.