We are marketing to probates in our area and I just got off the phone with a woman who's father just refinanced his home a couple of years ago, then passed away. They owe the bank just as much as the home is worth if they sold it retail.
They also owe 2-3 months back pay on the mortgage. They just want to get rid of the house and be done with it without spending a dime of their own money. We cannot wholesale this home with the current numbers but my question is this.. Would she be best off just giving this home back to the bank and will any of this effect her financially if their is money owed?
If so, would it would make sense for us to catch the mortgage up by paying the 2-3 months and see if she will seller finance? I am looking for other options before I close the books on this one.
She is motivated and wants to get rid of it soon. They home is in great condition (may need some paint and carpets). Should we walk away or present another option to her?
It's a situational opportunity, but not a deal if no one has the powers to pass title.
My rule: pass on marginal opportunities.
Ok thanks for the response, I just didn't want to pass it up and then realize there was another way to go about things. I am new to all of this and while my goal is to wholesale, I take each opportunity with an open mind.
In similar situations, I have approached the heir(s), and requested a quitclaim deed, and an assignment of interest, which grants me possession of the property, which is then rented out until eventual foreclosure is complete. This is an aggressive action, so consult with an attorney before you take action.
Another strategy is, if the payments on the existing loan are significantly lower than market rent, which may be the case if the interest rate is about 4%, consider starting a probate and taking over the existing loan "subject to", for positive rental cash flow.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.