Hello Bigger Pockets,
My Grandmother house is going into foreclosure because she is 88 years old and can no longer manage this property. she refinanced in 2006 for 100k and now owes 80k for the property in which she is no longer making payments and so as a rookie investor I told her that I will help her get this property off her hands. The thing is I don't know where to start considering her situation with owing more than 50% of the mortgage. what should I do Bigger Pockets Family? what strategy would I use?
If the mortgage is distressed talk to her bank. You may be able to assume the loan, rent it out and help your grandma with the generated cash flow. The bank wants the money, not the property. Just remember to get to a decision maker. If they are looking at the cost of foreclosure and someone walks in with the ability to pay, they will work with you a lot. I would start off asking for all back payments to be forgiven and ask for a principal reduction. You won’t likely get it but it you don’t ask the answer will definitely be no. Have a good negotiation strategy planned out and follow it. Don’t be afraid to shame them about throwing grandma out. Good luck!