Re: Is there a solution? - Posted by John Corey
Posted by John Corey on March 17, 2006 at 05:49:21:
It is only their house if they keep up their end of the bargain. It is not like they actually own the property free and clear. The equity is really not even there if they sell and with a week left the equity is effectively zero at this point.
A general rule for investors who buy a house about to be foreclosed on is the person who lives there moves out or there is no deal. Buying a home with the prior owner still resident is not good for anyone. If they could not afford it when they owned it (and had equity) will then be able to pay the rent each month knowing that they have no skin the game?
When death is close most people say they do not want to die. It rarely makes a difference in the outcome.
Either the people can afford to make the payments or they can not. If they can not then emotionally they need to move on and find a home that they can afford. People need to live somewhere but they do not need to live in the same home.
It might be sad as many things in this life are at some time or another. Other than someone donating money as a charity to help, what is going to change in their situation which will let them afford the home? If they really could now afford to stay many lenders will look at the details and work out a way to defer the missed payments as long as the borrower stays current with the future payments. It is too late for such a discussion in this case in most states.
I am not trying to be harsh. Just indicating that the viable options are not likely to include the couple staying without significant changes in their income or similar. When change is really the best option delaying the change rarely makes it any easier in the long run. Normally such delays cause more hard or emotional damage than a faster shift.
For those who want to save people in such situation I suggest a two step approach. (1) Go out and make large sums of money from doing smart deals. Pay the taxes and hang on to the cash. (2) When you find a situation where you honestly believe an act of charity is the right thing feel good that you have the means and write them a check. You can even funnel it through a local church so that you remain anonymous.
You are free to support any cause you like. If you apply yourself to RE investing you can earn enough to really make a difference when you want to do so.