Foreclosures

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Deyson Shaw
  • Twin Falls, ID
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Aunts house in foreclosure, should I buy?

Deyson Shaw
  • Twin Falls, ID
Posted Sep 22 2019, 00:08

Hey guys. I’m looking for some advice on my Aunts home that is being foreclosed on. I’m new to the real estate world so pardon my ignorance. I have only recently found out about this foreclosure and the auction is coming up quickly (October 24th). From my understanding she has two mortgages on the property. The primary being foreclosed on is around 51k. She took a second mortgage out about 14 years ago and that one is also in default at about 68k. According to my aunt, the second mortgage company said they were willing to settle for far less with a cash payout. Around 15k is what she told me. My question is this, how do I go about determining a total payoff amount and purchase the property before she is foreclosed on? Her home is in a great neighborhood and similar homes sell for around 200-225k in fixed up condition. Unfortunately her house has not been kept up for many years and could easily cost 40k to make it rentable or sellable.

A little background to my financial situation. My original plan was to start investing in real estate after a year or so of saving money and educating myself further. But my aunts current situation is speeding things up a bit. I just pulled out a HELOC on my home for 51k and have an additional 50k in cash. I'd really like for my aunt to walk away with some money rather than be foreclosed and have nothing. I just need to know what the best angle is for me to approach this situation. Any advice is much appreciated!

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