Sam, You need to talk to son again and see what the appraisers reason for the 138K appraisal was. Do some more research in the area to establish the actual value of the property. Ten blocks away could put a house in a different neighborhood with different values. You need to make sure of the value in this particular neighborhood. If the family has refied, then they have cashed out the equity, basically, and there won’t be much in the property. In situations like this, the family will often cash out as much as possible. This is not unusual. What you might think of is why were they only able to cash out 78K? Often, lenders will have a max amount they will loan. If they really had a 138K value, don’t you think they would have cashed out more? I think you’re going to find that this deal is being offered prety close to retail. They are attempting to pay the bills and pocket the difference. Besides, with care facilities and the way they are run, if you have a large equity in your house, they will often require you to sign it over or at least they will ultimately get the money.
Posted by Sam (Tx) on February 22, 2001 at 14:52:20:
House owned by elderly mom out of town living in care facility. Calls being handled by son in town where home is. Son says mom needs10k down for medical and other bills. Son says house was appraised at 138k. Spoke to a couple of owners that say houses go anywhere from 75k to 110k. Spoke to a realtor on house for sale at 105k about 10 blocks down that seemed to be surprised when I mentioned that figure. Called another realtor on house further down the street for 126.5K. There does seem to be a variety of larger and smaller homes in area. Neighborhood about 50 years old.
Internet county records - 75,050.00
Age- 46 yr old
Sq. Ft. - 1845
No equity. - Refinanced (How does refi affect equity?)
Son says Mom asking 88k with 10k down.
I have to get clear on will take note or carry 2nd for 78k
Son state that when they sold the house, the guy was a “do it yourselfer” and claims they made many small repairs after purchase and understands interior in good shape.
House sold to couple for 115k, they split up and put some unknown tenant in house.
Owner invites me to accompany him and sheriff upon eviction to view house.
The motivation is medical and other unknown bills.
Put in second call today will ask what is lowest price they will sell for.
What do you think? How do I approach this one. All opinions welcom.