Son's house due to foreclose on Dec 6 -- maybe we can buy it from him before then?

That maybe illegal to buy it from him and then sell it back. Selling it back to him really wouldn't defeat the purpose of the foreclosure. How many payments is he behind on?

I didn't mean to buy it from him then immediately sell it back, but to wait until he is able to get a loan himself and buy it back. He is about 5 or 6 months behind -- not sure at this point. He wouldn't even be able to pay rent until his leg heals up enough to walk, so we'd be carrying the payments ourselves for some time.

Maybe you should speak with an attorney to see if you can maybe pay for like 3 months of payments. But, if I were you I would do that buy it from him and market it for rent and maybe a down payment from the renter to cover it.

Why don't you just get him caught up on his payments instead of going through the rigamarole of getting a loan and buying the property, renting it out, and then selling it back to him?

If the goal is to save the house, wouldn't it be easier to get his back payments squared away?

Then, when your son can get back on his feet, literally it seems, have him pay you back whatever you put into it to stop the foreclosure process.

My opinion is their is no telling when his foot will heal fully to where he can work. If he could work. It still would be difficult for him to catch up...unless he worked something out with the bank.

I say ask ya self if just want to rent or maybe lease/option or sell with owner financing.Is he willing to let the house go? If so.. Does he have place to go? How much is his home worth? He owes 64k. Is that well below the market value? If so marktet the house for sale find an investor to buy and make money off the house. Or if the 64k is close to market value. Have him transfer deed to you and shortsale it. Or you can just get investor to handle the process and let him know his options to buy the house and make some cash. Your son can even do that now on his own. Save the money he makes to help kick this real estate business off for himself and be able to get in bigger better home in no time for a cheaper price!! And continue to make money on the process. And he can say forget going back to his job!! Hope he heals up quickly and healthily!!

I agree with Travis Cyber. Why not try to get a loan to pay off the arrears,and help him keep up the payments on the existing Mortgage? Much easier to make up payments then going thru the process and docs to get a whole new mortgage. And Travis is right, it could be illegal doing that, in fact it is illegal,and you could be setting yourself up for a lawsuit, even a criminal lawsuit. Check with a attorney first. You could always try to borrow hard money if you have to. Rate is high, but you might be able to beat the sale date.

You can have your son sign a release form for you to contact the bank on his behalf and let them know that you will be making the payments and that you want to bring the loan current if they are willing to add some of the late payments to the back-end of the loan.
worth trying...

good luck!
Valerie

but see if they could erase the late fees

They might be able to do this, doesn't hurt to ask.

Thanks for all the advice folks!

It appears easiest to just bring the arrears current as some of you have said, so that is probably what we will do. This will give us some breathing room, time-wise, to see what else can be done. It's a nice property that our son has largely built himself over the years and it seemed a shame to let it go for nothing.

Mike

Hopefully they will wave the late fees under the circumstances.

Are you in a position to pay off the arrears and to continue to carry the mortgage? Something to consider. Is the appraisal price decreasing? How injured is your son to the time that he is slated to return to his job? If one is not financially equipped, paying anything extra could be a burden. If nothing else work, the best thing is to sell. Maybe he might be able to make something off the sale in preparation of another purchase later. We could never tell what's around the corner. Good luck.

Sandra

Apparently, our son took the information I sent him earlier (the text of Dean's automated telephone message) and used it to talk to his mortgage company and they have extended the foreclosure date and have offered to refinance with a longer period and lower interest rate than before. Absolutely weird, given the circumstances, but good news nevertheless. His wife's part time job can probably tide them over until he's working again, which should be soon.

Thanks for all the advice!

Hi I wouldnt say weird the Angels are watching over you an give thanks!!!!! An in todays economical situation the Bank must feel Hes a good bet with his Wife working an thats a win- win for everyone an you can also bet the Bank is hoping for his best as well as there own. Thank Dean for his good advice an info, what a DGers Family we have here, isnt this wonderful? Have a great day an week an now everyone can sleep easier including the bank, Jim

Glad to hear things are coming around for the better. Jim is right, The Lord is Good!

Let me add this; Proverbs 24:6 an who said God doesnt care for us as well as are DGers Family, Jim ( for you who dont use the Bible it states @ Proverbs 24:6;"For skillful direction you will carry on your war,and in a multitude of conselors there is salvation", the Bible is the greatest book ever written an like Real Estate investing we need to read an study it an use it an we will be successful in all are ways) Have a wonderful week all!!!!!!!Thanks Dean.

things are moving in the right direction. But let me give you a viewpoint of what really happened. Banks are financial institutions that will always do things in their best interests. They were given a choice between foreclosure and getting the payments caught up and in this market, working with you in bringing the loan current is the better choice. They have to weigh the risk/reward of having a large loss with a foreclosure and having a non-performing loan versus swallowing a small loss through late fees and having a performing loan. A non-performing loan really gives a large hit to their tier 1 capital which can mean they also have to come up with additional funds or reduce their other loans until their ratio is back into their required zone. Therefore, in essence, it is a self serving mechanism that allows banks to help people in need, as we live in a capitalistic society where profits and losses rule the day.