More Foreclosure Questions
I am presently renting a home that is about to go into foreclosure. The owner got behind on the payments although we paid the rent monthly and in a timely manner. The owner and I are friends, and we would like to buy the house. However if we buy it before foreclosure we will end up having to take a loan for about $10,000 more then if we wait till the house goes into foreclosure. My friend wrapped up closing costs, a backyard fence and appliances into her loan. But if we wait she will end up in bankrupcy and owing the difference in the loans. Any advise?????
Millie
Glad to meet you.
When did your friend tell you about the loan not being paid?
There is a Federal Law that deals with "Equity Skimming" it is where you collect money from a renter and do not pay the mortgage company. Now, don't worry I am not going to tell anyone.
Seriously, I make it a point not to do business with friends, particularly when they have financial problems some how it always comes back to bite you in the butt.
If you help sooner or later your friend is going to turn on you. Your friend already has cheated the lender, committed a crime, how fast can you say 'better find a new place to live.' Not that we want to desert our friends in time of need but think of another way to help your friend in this case.
Millie, keep your honor and integrety in tact. Welcome on board this board, did not mean to be tough on you just figured to shoot straight from the hip and offer you some advice.
John $Cash$ Locke
Hi Millie!
John is right about your friend's ethics or lack thereof. However, you still may want to pursue the purchase of the house. Just don't put yourself in a position where they can hurt you, like paying off the arrears and letting them stay in the property. Or, paying a substantially lower than market value to buy the house. They could come back and say you took advantage of them. In some states, like California, you could go to jail for doing that.
I would need more information if I am to give you further advice:
What state are you in?
What type of property is it? Single family, etc.
What is the appraised value of the property?
What is the mortgage balance?
How much are the arrears?
How much cash are you working with?
How much, if any is needed to fix the place up?
What is your FICO score?
You can send me your answers by email if you like at bill@kmtpartners.com
Bill Young