Suggestions for a pre-foreclosure situation

[Andrew Lawhorn]

Hello BP community! 

There's a situation that was presented to me about twenty minutes ago that has left me searching for quality solutions. A family member (breadwinner) passed away within a couple of weeks ago and another family member has recently started to receive mail from the individual that passed. 

One of the items was a mortgage statement which stated the house is going through a pre-foreclosure process. The house was an inherited property that was paid off however unbeknownst to members of the family a refinance was done several years back. The individual who passed was going in and out of the hospital for over a year, which leads some of us to believe that her financial affairs (i.e. other late bills were in the mail also) were getting neglected. 

My family member contacted me concerned about this matter (since I tell everyone that I am a REI and currently working to get my real estate license) however I have yet to encounter this scenario in my studies or in real life. She wanted to know what can be done to prevent the house from going through the full foreclosure process. I am apprehensive about getting involved with family matters that focus around business matters, especially when they have six-figures in the equation but she was adamant for me assist. Currently, I know the house has people living in it now and it needs several thousand dollars worth of rehab. She plans to send me the mortgage statement with more details later today. Your feedback with solutions will be greatly appreciated.  

[Wayne Brooks]

Pretty simple.....They either catch up the late payments and continue making the monthly payments, sell it or it will get foreclosed.