Divorced foreclosure but owner's name is not on the note

[Sean Kelly]

I've never done a wholesale deal so looking for some insight.

I would buy/flip but there's not enough equity for me since I'd have to do hard money. What are my other options? Try and contract it then find someone who can make the numbers work?

Divorced mom of 4 is about to be foreclosed on 8/24. She got the house but his name (not hers) is on the mortgage and is 8months behind in payments. Her motivation is not to save her credit (since it wont be affected, according to her) but to have enough $$$ to keep her on her feet for the move.

Year built: 1997

Everything in the home is original

Loan payoff $129k (including areers), current monthly payments $900, $8k in areers 

ARV (conservative): $190k

Forecloses 8/23

-best/closest comps I could find: https://www.realtracs.net/listings/views/filmstrip?listingIds=2105851,2080337,2075036,2089370,2049903&fieldset=agent-full&format=report&expires=1504320495&signature=hJ3..GsrjO9FaTGB5yBH2gMcW$QRiKxTb~qfU*YrVtHX

- average days on market - 9

- median sales price $197k

Which, would make a conservative sales price of $190k. Though may be able to get $200k

Work NEEDED ($30k?):

- New roof (no issues, just an original roof)

- Paint (2 bedrooms, odds and ends.. maybe $2k of painting. $5k to do the whole thing)

- water damaged/stained ceiling in kitchen from broken bathtub drain upstairs

- HVAC drain pipe broken in exterior wall of garage. Would need to gut wall and maybe do mold remediation. Affected area looks to be ~5’x10’

- front porch railing and support columns are rotted.. all need to be replaced and painted

- 1 window in bedroom needs replaced

- my partner felt like the house was settling in the middle a bit but I didn’t see any visual signs of cracking around door frames or window frames?? 

Talk to me

[Jeshua Patrick]

Sean Kelly the first thing she needs is the right to sell. This requires either his signature at closing, or a court order granting her possession, or both. Without this all of the above is moot.

Next thing would be for the bank to agree to postpone. Again, if this won't happen, then all is moot.

Finally, it is noble that you want to help this lady but that's a great way to get burned. I would approach the numbers from a perspective of what has to be fixed to avoid taking on liability or to make it sellable. IMHO, if the roof doesn't leak, leave it to the next buyer unless that is the only way to sell it. That should help your bottom line.

If the numbers still don't make sense and you aren't willing to keep it as a rental, again assuming the numbers make sense, then walk. Don't let your heart burn you. If you want to help her that badly and you have the cash to do so, the cheapest option might be to write her a check and write it off as a charitable donation.