Hi everyone! 

Long time lurker and first time poster here.  I spent some time researching about wholesaling a while back, and it seemed like something I wasn't ready to jump into at the time.  An opportunity is presenting itself right now though, and I forget so much of what I learned.  I need some help from the pros!

My mother's neighbor is losing her house for some reason.  She doesn't know why exactly, but the other day she saw her cleaning out the place and she told her that she lost the house and the guy buying it "cash" gave her 48 hours to get everything out.  It's since been 4 days and the guy hasn't showed up.  I asked my mother to find out what he was offering her, how much she owed on the mortgage, and if there were any liens.  She's trying to get in touch with her as we speak but I can see her property tax is up to date, and know the wholesaler offered her $4k.  The house is worth about $70k as is, in great shape.

My question is, if I find out she doesn't owe much on the mortgage, and offer her more- what is the next step?  This woman already cleaned out her home of over 30 years and I know needs the money ASAP.  I would of course pay cash for this deal, and probably try and sell it retail or rent it out.  

What's the next step to a) make sure she doesn't owe a million things on the property, b) get her money as soon as possible since this poor woman has already thrown away all her belongings, and c) secure ownership of the property.

All help is greatly appreciated! 

The first question you should ask her is if she signed a contract with this other buyer.  Giving her 48 hours to move out seems rash.  A wholesaler will put a house under contract, then shop it to cash buyers, this may be what he is doing.  She accepted 4k for a house worth 70k?  How are you determining value?  What repairs or updating does the house need?  If she has a contract you will then need to either deal with that person or see if she can get him to void the contract so you can buy it.

i AGREE. Find out if she signed a sales contract. As far as if you pursue the deal and the other "buyer" isn't legitimate, get a title company to run a report to find out all outstanding liens, etc. 

Neighbor sounds like she's not competent to contract. 

Something is not right here... be careful not to step in it.

Wow, buying a house for $4000 and making the person leave in 48 hours... that is the most cut throat Wholesaler/Buyer I have ever heard. I agree, if it is something you have interest in, speak to the neighbor. I however would go over there as a neighbor, but explicitly tell her you have an interest in purchasing the property. Put all your cards on the table and be honest from the onset.

Thanks for all the useful help, everyone!  I'm under the impression she has not signed a contract yet, as per her son.  I thought the 48 hours sounded insanely heartless myself.  While I don't have any experience in this field, I can't imagine a scenario where that would be the right thing to do to someone... ever.  

Still waiting to get all the details and see if this will pan out.  If she doesn't have a contract, and the numbers work out well, do you recommend I just have a lawyer draw up a contract today, and then do a title search and other due diligence? 

Thanks again, everyone! 

Yes have your attorney/lawyer draft up a P&S agreement (Purchase and sale) and have the neighbor sign it if you know there isn't another one in place. Yours will become void if there is already one in place. I would personally just go over to the house and talk to her face to face figure out what kind of problems she is having. If you can solve her problems better then the other guy then you will be in a better position. so 1) put the house under contract if there isn't already one. 2) Do your due diligence. You got this!

@Staci B. It should be pretty simple to find out if she signed a contract, just ask the lady. If she hasn't, you get her to sign a contract and offer to lease the house back to her so that she doesn't have to move. This puts cash in her pocket and peace of mind.  If she owes back taxes, pay them. I would also find out if there is a reverse mortgage or any other liens on the property. 

This is all excellent advice guys, I really appreciate it.  She is already out of the house, and I'm trying to get her on the phone as we speak.  Will keep everyone posted with any updates as I find out more information! 

Originally posted by @Staci B. :

This is all excellent advice guys, I really appreciate it.  She is already out of the house, and I'm trying to get her on the phone as we speak.  Will keep everyone posted with any updates as I find out more information! 

This sounds more like she lost the house to foreclosure and got $4k for the keys and broom clean. 

She's already under contract, so it's a no go.  Thank you so much for all the useful advice though.  Really really appreciate it!  Maybe next time! :)

@Staci B. This may be your best deal yet, as you should try to help this woman get her house back.

The whole story doesn't add up, so trying a make a quick buck might not worth the hassle in the end. 

Hope this helps. Goodluck. Thanks! - Ola