I have a friend that just recently went through a divorce and his house is going into foreclosure next month 11/18. The home is around 1200 SQ ft, 3 bedroom, 2 full bath, 1 car garage, nice size yard, fairly good shape but needs all new flooring and paint. They owe $75,000 and rehabbed I would believe the house would easily bring around $135,000. The ex wife would like to keep the house to keep their kids in the same schools but both his and hers credit scores are bad and they are unable to refinace. I have offer them $75,000 cash and a lease for the ex wife for $750.00 dollars a month for a year. Here is where I need the advice. We want to close this cash deal without a realtor, do i just need to contact a title company and let them know the situation and request a closing. I want to make sure there are no back taxes, liens, second mortgages, etc. What would be my steps to closing this deal?
I suggest going to an experienced attorney who deals with pre-foreclosures. So that he/she can give you proper legal advice, and guide you through the whole closing process without a realtor. Most experienced RE attorneys have relationships with title companies as well.
I sold 1 of my house w/ rent to option with guidance from my attorney. No realtor was involved as well.
Yes contact a title company and explain the deal. You are probably better finding an attorney who does closing/title work because he will be able to offer legal expertise if any issues arise. Its a simple transaction and you do not need a Realtor.
I know you want to help you friend but if they couldn't afford the mortgage payment before what makes you believe she can afford it now? Real Estate is a business and I personally do not like to rent to anyone I know because they abuse your kindness and friendships can be lost keep just make sure you know what your getting into and good luck!
you wont make any money, no cashflow if you keep the ex wife.
i'd do it without the ex wife.
sounds like this is your friend's plan, not yours.
Thanks I will contact some titile companies today. The ex wife has a decent job and has been paying 1100 a month rent for the last year, her lease is up in January. The house is worth more than the 75,000 they owe. She has agreed to pay 800 a month. If she fails to to pay, I would evict her and rerent or sell the home.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.