Calif. Deal Feedback Requested
Here's the backstory. The homeowner died without leaving a will, so the house is still in his name, as is the loan. Before he died, he appointed his son conservator of his affairs and the guy tried for three years to sell the house during the market crash. Bickering siblings hoping to cash in created disagreements about the price, failing to lower it realistically during the market crash and long story short, they've given up and quit making payments on it. The house is not listed, is vacant and is in need of repairs.
ARV- 115-120K
Loan balance- 92K. Loan is 9K in arrears and 3700 owed on back taxes. The lender is the local Wells Fargo.
Repairs-rough estimate 15K
The guy wants to get rid of the house because he's worried about liability. He has little incentive to avoid foreclosure as the loan is not in his name and he will suffer no tax consequences. He's willing to try and shortsale it with the bank, but the BPO may not come in low enough for my liking, as I would like to wholesale it.
The property will cash flow if brought current, but I don't want to put out the money to bring it currrent and make the repairs.
I would appreciate any info or feedback regarding this. Should I give him some cash for the deed and if so how would that affect my shortsale negotiations with the bank? The bank will require that the property be listed during the shortsale process, which obviously would create competition and right now, I'm the only one the guy is talking with.