Friends and family - Posted by B.L.Renfrow
Posted by B.L.Renfrow on March 13, 2001 at 17:17:25:
Is it possible? Sure. The real question is whether it’s a good idea. Only you can answer that one. To some extent it depends upon whether you’re looking to make money, perform a humanitarian act, or a little of both. I’d have a couple concerns right off the bat: Does she have the ability to make rent payments? If she couldn’t pay the mortgage, how could she be expected to pay rent, which would need to be higher than the mortgage payments if you’re going to make a profit? And what about the husband’s interest in the home? Unless he’s quit-claimed his interest to the wife, you’d need to deal with him also.
If you do decide to proceed, you should consider up front what you’re going to do if she can’t/won’t pay down the road. If that happens, it would mean the end of your friendship, a mighty expensive lesson, or probably both.
Having said that, I have taken a preforeclosure subject-to from a relative. But they moved out, so I didn’t have to consider my options if they didn’t pay. And I doubt I would sell or rent to a relative or close friend. I think it’s generally better to keep business and family/friends seperate.
Perhaps another option would be to take the house off her hands, but help her find a place she can afford to start over.
Also, you’d probably get more response if you posted this over on the main newsgroup.