Purchasing a house upside down?

Question

I am relatively new to Real Estate investing. I had a good friend who's mother past away and acquired her home. He approached me about relieving him of it knowing what I do. Upon inspection this house needs around $60k worth of work. On The 70% rule by the comps around it I could only offer $40k, but the mortgage ended up being over $90k. In most senses this is not a good deal. I was wondering if someone could tell me how to help him get out from under this albatross of a situation?

Wayne Brooks · Answer

@Jason W Bearden The best bet would simply be to Not take title through probate....simply let the bank foreclose.  Your friend has no obligation to the mtg if it was in his mother’s name.  If he has already taken title, a short sale would be his best bet, assuming it really is upside down in it’s current condition.

Theresa Harris · Answer

What the mortgage is doesn't matter to you.  Your friend is the one who has to pay it.  It may require the bank approving the purchase, but again that isn't your problem.

Ryan A. · Answer

Jason, for the benefit of all, please be sure to update us on what you encounter and how you were able to handle the situation/or not. Thanks

Jason W Bearden · Answer

@Lianna Alcock

I requested a connection with you that has not been approved at this time.

Jason W Bearden · Answer

@Lianna Alcock

Connection required.

Lianna Alcock · Answer

Reach out to me I would love to help