Mom's in trouble-need advice - Posted by Ray

Posted by Ray on October 26, 2000 at 22:16:38:

Hi JohnBoy,
Thank you for your reply, unfortunately I was working for my brother who is being foreclosed upon, I haven’t seen a paycheck in months. I need to find a way to make this attractive to an investor, who deals out in the “Sticks”. Or find a good samaritan who will buy the house and let her rent it for the rest of her time. I’m starting from scratch, with lousy credit and in debt after working with my brother. I’m lining up some deals, but I won’t be ready to help by Dec.4th

Mom’s in trouble-need advice - Posted by Ray

Posted by Ray on October 26, 2000 at 19:36:00:

Hi All,
My mother lives in a house owned by my brother, he is in foreclosure and the house is being sold at sheriff’s auction on Dec.4th. My mom bought the house in 1988 and lost it in 1994, but was able to remain as tenant. My brother bought the house in 1997 and is now losing it with several other houses. The house is located in a “Camping/Resort” area where there is a lot of camping, boating, fishing, 2-3 State Parks, cottages etc. A seasonal “Playground” on the border of Ohio and Pa. The house is a small 2bdr. (which is common to the area)The Sheriff’s appraisal is $66,000 with a min. bid of $44.000 The house is in very good condition and needs nothing. The lot is on a corner of a little “Alottment” consisting of a half dozen or so streets, (barely paved)the lot size is .48 acre. (listed as 4 parcels) My mother has been fighting cancer for a number of years and recently was told that “They found a new growth and because she couldn’t have any more “Chemotherapy”, that she has only 6 months to live”. She went to another Dr. who is trying more chemotherapy to prolong things a bit, don’t know if it is working yet. All Mom wants is to live in the house until she dies. My brother is willing to sell the house for what is owed. $37,731 + fees, costs, interest, all totaled, between 43-44,000. So far there are no family or friends in a position to help i.e. buy the house and rent it to her.
I’m looking for some ideas on how to market this deal so she can live there for a few months or so.(I would like to think it will be longer)
any ideas would be greatly appreciated
thanks,
Ray

Re: Mom’s in trouble-need advice - Posted by JD

Posted by JD on October 27, 2000 at 10:05:59:

Have your brother Deed your mother the house. Then have her file Bankruptcy.

Re: Mom’s in trouble-need advice - Posted by Dave_rei3

Posted by Dave_rei3 on October 27, 2000 at 01:14:01:

Your mom may be a good candidate for a reverse mortgage. A reverse mortgage is one in which your mom would receive income for the rest of her life, and the bank would get the home when she dies. Basically, she would be receiving her equity paid out over time.

I have no experience with these, but I think it is definitely worth going to your bank and asking if they could refi the existing morgage with a reverse mortgage.

If not the existing mortgage, maybe they could place a reverse mortgage on the home in a second posistion. The payments received from the second could help with the payments on the first.

I’m not sure exactly how this would work, but like I said, talk to a local bank, explain the situation and ask if this would be a possible solution.

You can find some good Q&A on these at www.hsh.com/pamphlets/rms.html

Let us know how it works out.

Best Regards

Re: Mom’s in trouble-need advice - Posted by tarheelt

Posted by tarheelt on October 26, 2000 at 19:59:35:

The obvious answer is to buy the house yourself at the sale. Otherwise don’t expect someone else to.

Will this work? - Posted by Ray

Posted by Ray on October 27, 2000 at 17:45:14:

Hi JD,
Thanks for your idea, I don’t know anything about bankruptcy, so I have a couple of questions.
What happens after she files bankruptcy, does she keep the house? For how long?
Is it just a question of filing bankruptcy again and again? How many times can this work and how long does one bankruptcy take to work through until they just schedule another sheriff sale?

Re: Mom’s in trouble-need advice - Posted by Ray

Posted by Ray on October 27, 2000 at 06:32:12:

Hi Dave,
This sounds like a wonderful idea, I’ve never heard of anything like this. I’m sure my brother would give her the house to make it work. I think I’ll ask the board here for more info as well.
Great Idea!
Thanks a Bunch

Re: Mom’s in trouble-need advice - Posted by Ray

Posted by Ray on October 26, 2000 at 21:29:18:

Maybe you didn’t read the post. tarheelt?
"family and friends are not in a position…"
and why shouldn’t I expect someone else to buy it?
There’s $22,000 equity and the house needs no work.
and it comes with a 12 year tenant.
I’m sorry, but you’ll have to explain your post a little more clearly.

Re: Mom’s in trouble-need advice - Posted by JohnBoy

Posted by JohnBoy on October 26, 2000 at 21:40:57:

Hows your credit? Or anyone else in the family’s credit. You may not need any money if someone at least has good credit. You can take title, record the deed in your name and then refinance it to pay off the underlying debt. You’re only looking at 67% LTV on a refi. The only thing you need is to find a lender still allowing non-seasoned refi’s.

Contact Ed Garcia over on the “finance newsgroup” and see if he knows any lenders still doing these. He’s your man!