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I think this might be too good to be true, but maybe you guys can snap me back in to reality.
My girlfriends close friend (almost family) has a $900k+ home that she has a hard time keeping up with, long story short she filed for bankruptcy and moved out of the house into a smaller home (now that she can afford it). She was telling my girlfriend that she is trying to sell the home, but no one made any offers on it. There is 100K left on the home, and a heavy amount of back taxes (over 70k worth). My idea is to..
Offer $100k to pay off the home and 70k to pay off the remaining taxes, not sure if i can get a loan for this since i really won't be financing the mortgage. Once the house is paid off, transfer the deed into my name and continue paying property taxes only.
In theory would this work? Would someone be this willing to get rid of a house for such a low price not to deal with it?
Would it even be possible to get a personal loan for that amount?
You can always make the offer, and I suppose that some would be willing to sell for that amount given the circumstances. Me? I'd be insulted by such an offer (that is, if the house was really worth almost $1 million). If I was the homeowner, I'd rather let the bank foreclose on the property and hope to receive a more substantial residual amount of dough from the sale than take your offer. Being family (or "like family" is no reason to take advantage of someone.
Last edited by prospectheightsresident; 08-24-2016 at 09:54 PM..
There's either something you're not telling us (the home is uninhabitable? infested with snakes? in Flint, MI?) or you're severely underestimating the owner's intelligence. Severely. Because only a complete idiot would take that deal.
Wouldn't you also need to find out the terms of the bankruptcy proceedings? If she's not living in the house, is it still considered a primary residence (which is typically exempt from bankruptcy proceedings)? Is the house in foreclosure? Would she even be allowed to sell the house that far below market value?
I need a bankruptcy attorney to weigh in here.
ETA: Either way, someone has dibs on that equity. And we're talking A LOT of equity here. So much equity that even if it takes months to sell the home, the costs of mortgage, taxes and maintenance would pale in comparison. And if she can't make those payments, I assume the bank is involved, in which case, you'd need to get the bank to agree to your offer.
Last edited by WanderingFar; 08-24-2016 at 11:03 PM..
Offer $100k to pay off the home and 70k to pay off the remaining taxes, not sure if i can get a loan for this since i really won't be financing the mortgage. Once the house is paid off, transfer the deed into my name and continue paying property taxes only.
I'm not really sure what you mean by those two lines (poorly written?). Anyone loaning a substantial amount of money would most likely want it to be a secured loan. Unless you're doing (some forms of) owner-financing, Deeds convey at time of purchase.
Nonetheless, if she really has over $700K equity in the house, I would think that the bankruptcy court would want a piece of that.
Why in the world would you offer this? They put over 700k into the house and you think they'll accept 100k to be rid of it? They could probably list it for 700k and get offers or even 500k she'd be making a killing over what you offered.
Why in the world would you offer this? They put over 700k into the house and you think they'll accept 100k to be rid of it? They could probably list it for 700k and get offers or even 500k she'd be making a killing over what you offered.
There would be zero incentive for the homeowner to take an offer like this. The only thing that would come out of making an offer like this is you would likely offend the homeowner so much they would never deal with you again, even if you later made a more marketable offer.
No it won't work because when you go into bankruptcy you get assigned a trustee who will be in charge of disposing of the asset. The trustee's job is to get as much money as possible for creditors. Your girlfriends' friend can't sell it without the authorization of the court.
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There would be zero incentive for the homeowner to take an offer like this. The only thing that would come out of making an offer like this is you would likely offend the homeowner so much they would never deal with you again, even if you later made a more marketable offer.
