I have a family member that’s currently having a hard time paying off their house, I was thinking about purchasing a home for about 150,000 and doing a lease-option to them.
I also want to short sale their house their currently living in. would it be a good idea to do that? I’m pretty sure that she owes way more than the house is worth right now, owes about 700,000 and the FMV is 500,000 - 600,000. The house is fairly new was built around 2005.
I’m hoping to do this before she starts to go into pre-foreclosure.
Any idea’s or advice would help.
The short sale is worth doing, just make sure that you don’t mention the fact that you are related. Hopefully you don’t have the same last name.
As for buying a house with the intent of leasing it out to someone that is in default, thats probably not a good idea, especially if they have not fixed the issue that got them in default in the first place (like too many bills, not enough income, or lack of desire to pay bills). All you’ll be doing is taking the headache off the banks hands and putting it into yours. If they can’t payments to you, then you’ll have a bad mixture of family and money and may have to evict. I wouldn’t do it
intent of leasing it out to someone that is in default, thats probably not a good idea, especially if they have not fixed the issue that got them in default in the first place (like too many bills, not enough income, or lack of desire to pay bills). All you’ll be doing is taking the headache off the banks hands and putting it into yours.