Preforclosure Purchase
I hv a deal that was just offered to me that I'd like some comments on. A family has 1 acre with a single wide mobile on it, in a mobile home community where all parcels are about 1 acre. They purchased the parcel in 1993 but now hv fallen behind on payments and hv until the end of this month to get current or foreclosure will take place. I hv not personally talked with or met them yet (I hv a friend who is a mobile broker who they contacted and he brought it to me). I want to see them over the weekend to get all the details of their situation.
Tax assessed value is $33,000 and fm my search in the records it appears their mobile is the smallest in the area (650 sqft) and others in the area are assessed higher.
I hv spoken with the bank and they advise that $15600 is the principal due plus appox $2500 in other cost. If I pay them the amount due I can have title to the property.
The family still wants to live there (fm tax records it appears his mother lives next door) and they don't want to lose their house. My thoughts are to have them sign a note for $30-32,000 at 12% make monthly payments of $550, and have a 2 yr balloon for balance due. I guess cud do a lease option instead but I'm not sure ?
I am going to buy this with funds fm my self directed IRA so everything will be at arms length.
I'd appreciate any thoughts on the best way to handle this.
Thanks,
Bob 
it is never a good idea to lease back to individuals that are not making their payment now. What is different that they would lose "ownership" and take a step backwards in hteir life to "rent" the same property from you?
[addsig]
I totally agree. It would not be wise to lease to the previous owners. They didn't pay then and probably wil not pay later. Don't get your self in furture trouble.
Thanks for your thoughts. I sure you are correct. I'm going to pass on this one.
There may still be a way. Talk to your broker friend to get a fix on how much this deal is worth. I sounds like there's some bucks here. Next see if the occupants will go quietly with a little U-Haul money.
I hate to say it again, but these people got to git.