ahoy everyone, I have a seller who will put the house in my name so she doesn't lose it to the bank or have to sell family home. 32k prior mortgage in late fathers name, city assessment at 90k. She's ready to put everything in my name as long as she gets to stay there. The passing of father was hard. I want to move forward but I don't know what I don't know. Reach out if you have advice please.
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
10mo
Are there any liens on the property? What condition is it in? City assessment is usually low, but if you owe $32k on $90k, that leaves only $58k in equity, which is not much in today's world....
I would contact a RE attorney and pay for an hour of their time....see what they say.
I have an appointment next week with re attorney locally, just wanted to reach out and see if I'm doing good. The city assessment is low, rough estimates are 180k if on Market.
Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
10mo
How long will she stay there? Are you going to put a lease in place and charge rent? Will she be a good tenant? I would do your due diligence on that part. It could help you win the deal but you also need to make sure it makes sense.
Are you going to put a lease in place and charge rent?
Yes, 1500
Will she be a good tenant?
Possibly, she has done a lot of interior updates, kitchen, bathroom, garage. The issue is rent payment may be right at first for her.
I would do your due diligence on that part. It could help you win the deal but you also need to make sure it makes sense.
Losing her father took a toll on the entire family, she probably got hit the hardest with grief. A window of adjustment period I'm allowing but reasonable. If not the re attorney gets involved
Real Estate Broker · Member since 2024 · 131 posts · 61 votes
10mo
Ben, you’re right to pause here. Situations involving inherited property can be emotional and legally complex, so taking a breath before moving forward is smart.
That said, opportunities like this can be great if handled correctly.
Here are a few things to think through:
Who legally owns the home right now?
If the father passed recently, probate may still be involved. You need clarity on whether she has the authority to transfer title.
Does she plan to stay there long-term?
If you take ownership, you become a landlord. Make sure expectations are agreed upon in writing. Get a lease, hire an experienced PM if you've never managed a rental before.
Run real numbers.
If the mortgage payoff is around $32k and the true value is much higher, there could be a strong equity position, but only if the property is in good condition and the transfer is done properly. Do you have an idea of the current condition?
Also, if its heading to foreclosure, they will be an outstanding balance that is due to get it out of the FC process. I'm assuming you'll be responsible for that. Do you know what that amount is?
Bring in an attorney.
This is one of those scenarios where spending a few hundred dollars on legal advice protects both you and the seller.
Every investor remembers their first deal and the nerves that come with it, but the key is making an informed decision rather than a fearful one. With the right information and structure, this could be a very meaningful opportunity for both of you.
If you want to talk through different deal structures or questions to ask, feel free to reach out.