OfflineI am a new REI and I have come across a deal that I cannot refuse, but I need some guidance (or buyer) on this one. Here is the deal:
My wife's uncle just recently passed away and his wife had passed away several months prior to him. My mother-in-law (his sister) and her sister and 3 brothers are executors of his estate. He (and his deceased wife) own a 3 bedroom 2 bath brick home with approximately 1781sf that was built in 1984. The house does need some upgrading and minor repairs (about $20-25,000 worth) to make it a very nice house again. There is a balance of approximately $35,000.00 on the house and the mortgage payments are about 3 payments behind of $900.00 a month. I had some comps pulled on the house and they range anywhere from $84,000 to $90,000.00 depending on the upgrading and rehab work. It is located in a nice middle income neighborhood that seems to be very quiet.
Since he just passed away and there is no will, the estate (my wife's family) does not want anything to do with the house and they would rather just let it go back, but they know that I am interested in it. I need to know if there is any document that I could use to let the Mortgage Company know that I am interested in this house and if so, what that document is and if there may be a buyer out there that may be interested in this house as well...I am open to any suggestions or guidance at this point, and by the way, I have not made my first deal yet and I am patiently awaiting for that too happen...Thank you in advance......!!! ****( I am in a crunch time since they are going to be starting Foreclosure Proceedings on December 17, 2010)****
You could have the executor sign a bank release that gives you the right to discuss the financial situation with the bank. If you can catch up the back payments, then the executor should be able to quit claim the property to you as long as all the heirs agree (in writing preferably). Or you could try to negotiate with the bank and ask if they could tack the back payments onto the end of the loan. The bank does have the right to call the loan due if it is a non-assumable loan, but if the payments are being made, that usually keeps the bank happy. I guess it depends on what you plan to do with the property as well. Sell, rent, lease option.... But I would start with getting a release for the financial information from the bank.
Sheila
"If God is for us, who can ever be against us?" Romans 8:31 NLT
Well in my point of view in this case would be first of all would be to get all the family that involved to agree to release the property over to you with contract to purchase/sell retain a copy of the death certificate with the contract to sell or release of ownership and/or a power of attorney giving
you the athority to act on their behalf and a noterized letter from them stating that they have no interest in doing anything with the house at all.
take all of these documents to the bank and tell them that you would like to purchase the property. Tell them that you would like for the to carry the note. and put the past due payment at the end of the note. Have you a legal appraisal as well show it to them and tell them that their are repairs need in the amount of 25k and you want that rolled in the note if you have your appraisal paper work in your hands at that time you can ask them to give you
a loan for 75K this will give you enough to pay off existing loan capital to do repairs and at closing will should receive and check in the difference of the funds to pay off, rehab and the amount financed back into you pocket. Oh yea you also need at lease 3 bids from contractors showing the estimated cost
of repairs. So you got a lot of paper work to gather up. Oh yea don't worry about the forclosure procedures this just give you a better of positivity in dealing with the bank. Because they don't want to forclose and they don't want the property back. So to see you come in and take over the propety will
be like santa coming in with a great big gift for them and you should get all of your demands met with ease.
I want to thank everyone for all of their input on this touchy matter. I am working with the family now and they are considering alot of what was mentioned.
Thanks again