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We have a close relative who is getting on in age and having trouble paying his mortgage and we would like to help. He owes approximately $90k on a property that might be worth $90k if he’s very lucky. There is a 1962 singlewide mobile home on the property that he lives in and 2 dilapidated, vacant buildings so I really thing this is just a land value only property. If this is really the case, it is probably worth under $50k. Should I try to work with his bank and do a short sale? I can get a BPO and a “WeBuyUglyHomes” bid and come in over those when I approach the bank to buy this property. Will the bank allow me to buy a relative’s property in a short sale? If the bank approves, I will rent it back to him at a very low rate until he leaves the property, which probably wont be long unfortunately.
Elizabeth
It would be hard to get a short sale unless he was behind on his payments. The chances of them selling at a discount to a family member are slim.
If it is a local bank, you may have a chance. But it is one of those “too big to fail” banks or mortgage companies, your chances are slim mostly because they are probably just the servicier for the loan and do not actually own the note. The note is probably owned by a wall street company.
Instead of letting your relative stay in that situation, would it be better to buy him a nice el cheapo mobile home in a Mobile home park, then just walk away from the other property. In a park, he’d have other people around to visit with and he could totally get rid of his debt except for lot rent.
If he moved out and stopped making payments, the property will go to foreclosure… then you could come in with an offer to buy.
Great advice Jackie and its funny because this is just what I did for him a few years back when I bought my first mobile home with him in mind. But after I bought it, he decided he did not want to move out of his long time home and property after all. Now his health is worse so we’re trying to help again. We will take care of him no matter what so it sounds like we will have to wait until he is no longer able to stay in his home and then either try to buy it back at foreclosure or get someone else to buy it on our behalf if we can get the bank to do a short sale.
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