Neighbor wants to let home foreclose but I think it can rent

2 Replies

My neighbor want to let her home foreclose ( info found out through neighborhood conversation) but I think it can rent and cover the mortgage. This not knowing her mortgage but Im guessing its $1,400 and the home can rent for $1,700 - $1,800. The home needs minor repairs like holes in the walls and there is a sections that is not finshed but can be done for a few thousand, just drywall . Would this be a good situation for taking over the payment and renting out to save her from foreclosure and saving her credit and gaining a great rental in the process? I have not approached her about this yet but just want some ideas of how I could make this work for the both of us.

Using your numbers, it is a tight rental. It may cash flow better if you bought it from her for what she owes, and get a new mortgage on it. The only way to know is to have the conversation.

Thanks @Jason Diclemente , yes the best way to know every aspect is to speak with her  and explain the advantages of not foreclosing. Also true a new mortgage would spread the loan over another 30 years making it cash flow better then the current loan. Thanks for the input 

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