How to proceed on this property

Question

I am a wholesaler and I have a very motivated seller. She married moved out of state and left a family member to live in/take care of her house. Bad idea. She is now 4 months behind in mortgage payments (around $3000). She believes the house may be in foreclosure but does not know if the house has been foreclosed on (she was not getting her mail forwarded to new address). I saw no evidence of that at the Probate Court/Records where records for real estate transactions are kept. I did see the mortgage company just sold the note to another mortgage company (that she was unaware of). Is there any significance to this transfer (mortgage and a foreclosure)? She owes $85K. The comps, as best as I can determine, has the house ARV at $79K. The 1135 sq ft brick house needs $10K repairs that would include but not be limited to new shingles and a new AC and maybe kitchen appliances. This isn't a regular all cash deal. I don't she her getting anything but just walking away from it.

Any ideas what I can do with this?

Thanks

Any ideas what I can do with this?

Thanks

Stephanie P. · Answer

@Doug Haisten

Not much you can do with a property that is worth 79, has a mortgage on it for 85 and needs 10K to bring up to speed.

Wait for the bank to foreclose and hopefully you'll be able to wholesale it for 30.

Go get another one is my advice.

If the homeowner wants to keep it, they need to bring it up to date, fix what's wrong and then rent it with the hopes that the tenant will help her recoup the money she put into it.  It will take time, but if she wants to keep it, that's what she'll have to do. Either way, selling or keeping, she's going to have to pay out of pocket unless she just gives it back to the bank.

Best of luck

Stephanie