Heres the deal:
I have a close friend who is currently playing in the NFL in another state and needs help. His grandmother who lives here in Southern Ca in a modest home needs to sell her home. She is behind on her mortgage payments 25k and still is still in preforeclosure. My friend would like to acquire the property before she is foreclosed on. The property needs about 50k in work done to it. How would you guys go about acquiring this property without have the "due on sale clause" put in effect? He has the means to bring the mortgage back current also.
Why doesn't he just pay the money that his mother owes to bring the mortgage current. Then she can keep the house.
From there, he can do whatever work needs to be done, buy it from her, etc.
@Tom V. she needs to move out of stat and also has mobility issues. He wants the property in his name.
1. She owes the money and needs to pay it back. If she can't and he can, and he wants to keep the house, he should pay it back.
2. Once the mortgage is current, she should be able to deed it to him. Will the bank accelerate with a due on sale clause? Probably not, but that's the whole point of a due on sale clause - to prevent someone from selling/deeding a house without paying off a loan. But as long as the mortgage is current, they probably won't care.
3. If the issue is that she doesn't want to put the property in his name, then BP is probably not the place to get help.
Get the mortgage current, and she can sell it to him formally.
He can get a new loan if he really needs to, right?
Lamonte, If she owes more than the house is worth she could apply with the bank for a short sale. If approved, your friend cold make an offer. If there is equity there, then he should pay her for the house and the bank should get paid off.
I'm sorry this lady is in this situation. I am glad your friend has the means and motivation to help. The bank made a loan in good faith - that's why she has a house. They aren't the bad guys here.
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