home owner in a complicated situation

If the current homeowner can not make payments but wants to stay there is no way for an investor to make it work. Unless they pay the persons mortgage out of the kindness of their heart.

Maybe the person could rent out a couple of rooms to help them pay the mortgage?

You need to try and point out the reality of the situation. They need to start paying or they need to sell the place and move into a more affordable home.

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

Iam with Mike rent out part of it or rent out the whole property and get a place to rent for them selves, theres only so much we can do as investors, this person needs to get breal, Jim

How much equity is in the home? Maybe there is enough equity where you can buy the home for 70% of FMV. Mortgage it and let them rent it from you.

For you to get the best answer here at DG.com from these wise mentors we all look up to, you will need to gather all the information you can and post it. They will look at it from many different angles.

And yes, sometimes there just will be no answer and you will have to walk away.

I was also thinking along the lines of equity. Find out more. Maybe a private note buyer would be interested in buying it and renting it to them if there's a significant amount of equity in the property...However the bottom line is if they can't afford the payments they have to leave. But why can't they afford the payments? Find that out and see what they can afford. Would it be possible for them to pay if it were refinanced? If by taking the principle owed and refinancing that amount into a new mortgage they still can't make the payments, there's no hope. Unless they are willing to do that and rent it. These may not be ideal solutions but they have to accept reality and look at it from all angles. Help them understand their options. That's all you can do as a friend and investor.

thank you both for your insite. i just found out the house is vacant so i suggested they rent the property out. please correct me if im wrong>>>i also stated that if the family member that pays the mortgage is not on the title then the owner in this case has all power to the property. thanks again

im waiting on that answer as far as equity. i wouldnt mind buying the property and selling it back as arent to own. these people are friends of mine...well at least the owner is. she is stressed and distrought at the possibilty of losing the family home....i will be back on here in a few hours as i have school in a bit! thanks alot folks. glad there are people here willing to help.after all real estate investing is not only about helping ourselves but also helping out our fellow man kind...

Be careful about buying or taking over and then renting it back to the owner. You can run into trouble with that because you are an "investor" taking andvantage of a "distressed home owner" you are perceived as knowledgeable and if they became disgruntled and decided to sue you you would lose. Best if the owner doesn't have anything to do with the property after it is purchased.

you make alot of sense and i appreciate your insite.this feild is not my forte as i focus on tax liens/deeds. i was hoping the property was behind in taxes so i could accuire the property that way. im still waiting on a response from them bi=ut i will be contacting them this weekend. thank you

thank you for your response. im not sure i understand how my helping is concieved as taking advantage of a distressed home owner. could you please give an example as to how that could happen? ive been under the impression that if i cover my you know what with the correct contract,id be safe from law suites but then again this is not my forte as i focus on tax liens/deeds.thank you for the heads up. guess i have some more due diligense to work on

People can always say "I didn't know", or "I didn't understand". Doesn't mean they are telling the truth. But, because of how the law are written, they can win.

Make sure your contracts are very clear. And, it would hurt to have a line that says, "I have read and understood the items in this contract, and know that I have the right to have my attorney look over this before I sign". It may seem like overkill, but it can save you from a headache later. And, as always, talk to YOUR attorney about it beforehand.

Hope this helps,

I wouldn't get financially involved with a friend or family member; I would give my advice, but I would not buy her house and then rent it and sell back to her. If she doesn't have the money to pay for mortgage now, how do you know that she will have money in the future? If something goes wrong down the line, your friendship with homeowner will end in bad terms.... not worth a house...