I see a house on market that had a contract for 159k this year. However, it fell through when the inspector found a basement nobody knew was there (no stairs, previous inspectors have missed it for over 20 years) The house is completely remodeled, however the foundation repair has been bid at 70k and the owner owes 85k. Is there a way to help owner out of mortgage with paying 30-40k with a construction loan.
@Jared Peterson presuming the ARV of the house is actually around that $159, there's not much wiggle room. I doubt the owner will want to sell at $85K, and even if he does, plus the foundation work and closing costs, you've already overpaid for it.
The only possible solution is if there’s a cheaper foundation fix out there. I know I wouldn’t take on that risk in case the repair costs go over.
That was my thinking, that kind of risk would only be mitigable if it could be bought under 40k in my opinion. I was trying to think of a way that a bank would agree to let an owner sell for 40k due to the condition of the home without the owner facing repercussions. Also, I don't know if it changes things but I believe it is active military moving to another base under VA loan. I would think the bank wants rid of the problem of an overvalued asset as much as the owner.