BiggerPockets

I won't go into all of the details of a situation that currently affects my mother, but I'll provide as brief an explanation as possible. Her income is only 800/month as she's on Social Security and she has no other source of retirement income. Her landlord may try to pull something to essentially price her out of the $420/month she's currently paying for rent. Unfortunately, it will be near impossible to find a comparable property with rents that low anywhere else...

I can find fairly decent homes in good neighborhoods here in Indy for approx. $50-$65K. My credit is a bit under 700 right now and I'm told I can't get an investment loan until my score is at least a 720 and even then I'll have to pay points and need AT LEAST 20% down. I won't be able to get my score up to that level for at least a couple of years...(I guess this isn't brief is it?) My mother had hospital visits that she could not afford and as a result, her credit is literally down the tubes...

I wouldn't want to do a hard money loan because I simply would not have a way to come up with the money at the end of a short period. Does anyone know of any ways in which I could purchase a property for my mother? I would be looking at bank owned or HUD properties so I could not approach a purchase with seller financing, contract, etc...

Any ideas would be greatly appreciated... I'll stop playing my violin now... :violin:

Thanks Chris but I know that would not be an option with bank owned properties and that's the only way I can get her into a decent neighborhood, without having to do a lot of work, at an affordable price.

Jon, I love my mother, but I'd probably end up in a mental institution if we lived together. She would need an apartment with a carport or garage because her car leaks in the rain/snow and she can't do stairs. There aren't many apartments that are in decent areas that will rent that low. She's spoiled now because she is currently in a single family home and this is the first time she's ever lived anywhere other than an apartment or mobile home and now she says "I just can't do an apartment." I really need to find her something cheaper than even the 420 because it's over half her income and she can barely make ends meet. I tried looking at retirement communities because her health is poor, but they are incredibly expensive. My mother has a very tough personality to deal with and always finds the negative in everything. She gives up at the drop of a hat, so it's really an uphill battle, one in which I have to do all the legwork because she has already been defeated in her own mind and is content to just sit there and wait until the landlord raises the rent to an amount she can't afford and be forced to be evicted. I'm trying to be proactive while she works in a reactive state which is what got her in to this financial debacle in what should be her golden years in the first place. Sorry for being so wordy.

If I can get a 50-60K home in good shape, I can help her out with the additional amount needed for the payment & insurance as it wouldn't be much. Already ran the numbers and the payment wouldn't be much more than the 420 she's paying now. And I like the idea of owning the property vs. her risking something else where the rent will inevitably go up. We did look at section 8, but unfortunately the list has been closed since 2006 and they can give no indicator as to when they will open it back up. I'm still looking for alternatives, but was just wondering if there were any ways (that I hadn't already thought of) in which I could get the financing for a bank owned or HUD property...

Thanks I'll take a look at the Homepath option. Anyone else that has suggestions for financing options when purchasing a bank owned/HUD property that will be a buy and hold, I'd greatly appreciate it.

Carlos, I haven't seen much in the way of in-laws quarters around here, but definitely something to think about if I could find something that wasn't over the garage since she can't do stairs. Thanks!

Thanks Angel, I'll have to research an equity share agreement to see how the mechanics of that would work.