My husband and I are looking into purchasing a home from a family friend to be used as a rental property. We have NO experience in real estate but would love to use this to get started.
Our family friend loaned the occupant money and they put their house up for collateral. Needless to say the occupant did not follow the promissory note and has defaulted.
Instead of going through the eviction process our family friend wants to sell the house to us for a low price ($15,000).
My question is, how much trouble would it be to evict the occupant after we purchase the house?
Thank you in advance!
Your friend could sell you the note and you can foreclose. The borrower is the home owner so you can't evict. Check Florida's foreclosure laws. It could be a really good deal at that price, depending on the value of the home and the costs of foreclosure in Florida. Find out how long the borrower needs to be in default before you can foreclose.
Thank you for that! I will defiantly talk to him a little more about he specifics. I searched the public records and looks like it may have already been foreclosed upon because there is deed document from the occupant to our friend.
If so I will follow the eviction process for Florida!
Wish us luck!
There are many ways to handle this but eviction is likely not one of them. You need an attorney to look at the documents for the agreement your friend had with the defaulting homeowner. Without reviewing those documents first there is NO WAY for you to know how to move forward.
You could purchase the note and go through a lengthy and expensive foreclosure but as the note holder you still have to put the property up for auction so you aren't guarantee to get it. Risk is small but still not guaranteed. There may be an easier way to skin the cat.
Was an actual mortgage and note recorded?
Does the defaulting homeowner want to move in exchange for forgiveness of the debt? If so a Deed In Lieu could be the answer.
$15K doesn't sound like much. Does your friend think that you are taking the property subject to the loan or is he recording a satisfaction?
There is a lot here for you to consider and work out. You yourself said you have NO experience with real estate. Hire an attorney on this one.
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