What to do with a property that's in trouble

Question

Hello and greetings to the biggerpockets community,

Yes, that includes both Josh and Brandon. :-)

I would like to know what options I may have with a property that's in my control at the moment.

The owner has not made a payment and not lived in the home since 2013. The only reason it has not yet gone into foreclosure is because he is an army Sargeant and has thid, solder/sailor protection clause.

According to the bank that holds the loan, they want a buy out of  174,000 but that is way more than any house in that area.

The house is in Killeen TX, 5 minutes from the army base, and 12 minutes from the a University.

What can the community suggest me do?

Omar Alvayero · Answer

I would try buy it, but I don't have the funds. And I  currently don't have a private lender, which would be the way I would have to go in order to  buy it. Because at this very moment my credit is not good.

I've been trying to get financing through banks and hard money lenders but frankly they are very expensive, and banks ask for soooo much paper work. But was denied any way because of my low credit score.

Jordan Lagrassa · Answer

short sale would be the best option. Are you trying to buy it?

Omar Alvayero · Answer

Yeah, I was afraid you might say that. At this point a short sale seems to be the best way to go.

Thank you Brandon

Omar Alvayero · Answer

David, thank you.  The advice is greatly appreciated. You're totally right.

I am totally new at this, and I am worried about that. But, that's why I prefer to ask first before acting

David Dachtera · Answer

@Omar Alvayero,

As long as he will attend the closing and sign the papers, you should be good to go. Just let buyers know that you're doing your brother a favor when you do showings, deal with agents/brokers, etc.

Contact an attorney before proceeding, just to be safe.

David J Dachtera

"Success is not a destination. Failure is not an event. Success is a process, failure is a choice."- DJ Benedict

Omar Alvayero · Answer

I guess what I  meant to say is that, the owner wants nothing to do with it now, he just wants it to sell or rent, but he wants no part of it. He told me verbally that he gives me  control as to what direction to move in.

But, I don't have any type of contract, the reason, the owner is my brother.

That's why in need to know what is the correct way to approach this situation in order to find a solution.

Brian Adams · Answer

What do you mean it is in your control?  You have a contract with the bank?