A guy working on a house of mine was telling me that he is so sad because he wishes he could buy his uncle’s house that’s going to auction in 10 days.
The uncle is losing the house because he is terminally ill.
He wants to make it his permanent residence because he loves the house plus it has sentimental memories for him.
He said the tax papers say the house is worth 48k. The bank wants the 26k owing on it. The house is in San Antonio.
I told him I could either lend him the money as a private lender or perhaps I might just buy it so that he can live there with the option to buy when he can qualify.
He was having a hard time obtaining a loan because he has always paid cash for everything and has no credit history. He is young but makes very good money. I should know, I pay him enough!
The bank told him that if he comes up with 3000, then they will give him a loan.
I told him to get a good faith from them and then to fax it over to me so I could see the terms.
I have no idea how to put this deal together. What is my first step?
Should I buy it for cash, get a mortgage?
How would you structure this deal before the auction?
I really don’t have all the details yet. It was just a quick phone call. He said Wells Fargo would lend the money if he came up with 3000.
I immediately offered to help because I felt so bad for him. He is a very polite, hardworking young man. He loves that house and I want to make sure that he gets to live in it.
I don’t know a thing regarding foreclosures or the procedure.
I would welcome any advice on how to do a win-win deal.
I’ve been wanting to say a big thank you to everybody on this board. Everyday I learn something new. Then I realize how much I really don’t know…but that is a good thing.
This board certainly has a great bunch of very intelligent experts. I really appreciate your honesty and more importantly, your integrity. Thanks for sharing.
Linda
He will not have enough time to get a loan and close it in 10 days. The least amount of cash out of pocket and fastest way is to cure the default. Probably less than the $3K. You will need to get written permission from the uncle or even power of attorney to act on his behalf or the nephew.
After the loan is cured you can work out the details about getting a new loan or just do a sub2. You may want to secure your loan with a note and deed of trust. If the uncle will deed the house over to the nephew then you can loan the money to him and record the lien at the same time you he records the deed.
