New to investing - possible deal has dropped in my lap

Hello my name is jeff. I live in jacksonville fl.

I’m new to investing and a possible deal has just dropped in my lap.

My wife has a friend (fr1) that entered a deal with another friend (fr2) to purchase a house. The house was purchased back in june for $74k. Fr1 put $12k down and Fr2 signed a loan for the remainder of the purchase by getting a $62k VA loan.

The house was purchased in Fr2’s name with Fr1 nowhere to be found on any paper work pertaining to the house. Fr2 did put in a will that the house was Fr1’s house.

The agreement was that Fr1 would make the payments til the loan was paid off and the house would be hers. Fr1 has stopped making payments as of Oct. So the house is currently 3 months behind. PMI is $550 @ month.

Fr1 was going to get the money for the arrears on the loan from my wife. That’s how we got involved. Fr2 is 75 yrs old and doesn’t care at this point if the house goes into foreclosure. Fr1 has no intentions on paying the arrears because Fr2 is sick and fears his daughter will take the home somewhere down the road.

We have advised Fr1 to speak with Fr2 and his daughter but Fr1 refuses and is going to try and stay in the house for 3 more months.

Sorry for long post…but just trying to figure out if there is something here. My wife and i have a relative moving down and the house would be perfect for them to move into @ $700-$750 @ month. So month to month would be covered. We have the money for the arrears and fees for up to 9 months if necessary. Taxes for the year have already been paid. House shows on tax assessors website as being $57k tax assessed value and just market value of $61k.

I would assume this would be an assignment of some sort if we could get Fr2 and daughter to agree to it. But i’m not sure because of VA loan what type of agreement.

Your thoughts…

The occupants have little to lose by squatting in the house. So, you have to create some incentive. Keep reading.

I doubt the squatters have a lease agreement, or anything in writing. So, ‘somebody’ (Fr2) is gonna have to sue for repossession of the house, without a lease agreement to backup any breach that might have existed.

This is the same as evicting any squatter.

In this case, it’s probably easier to have Fr2 deed the house to you, along with administrative rights to the loan. This gives you equitable interest; rights to possession; and status to evict the squatter.

You need to check the title to see if Fr1 has liened the property, or not. If he has liened the property, this complicates things, because a simple eviction is not gonna give you a marketable title.

Bottom line solution: Offer Fr1 cash for keys (and if necessary, cash for a lien release, too), but do not give Fr1 money UNTIL he’s out of the house, and signed any releases.

How much money you give Fr1 is completely up to negotiation. However, I would explain, to Fr1, that he has two choices:

  1. He can squat in the house, and you are going to sue for an eviction and/or unlawful detainer; get a judgment against him; get a court order to garnish his retirement checks; seize his vehicles; tap his bank accounts; and otherwise make it impossible for him to rent much more than a refrigerator box under a bridge, for the next three years …or

  2. He he can accept your $2,500 offer to move out; release his interest; and avoid all the drama and trauma.

It’s his choice.

Meantime, he’s got until 5:00 p.m. today accept your enormously generous offer, or you’ll start making his life a living hell.

Start the eviction process as soon as you determine that Fr2’s deed is marketable, and he gives it to you.

You need to get the deed, and record it, asap.


Javipa, thank you for your response.

Question: how can Fr2 deed house when the house was just purchased in june. He wouldn’t have the deed, right?

Of course Fr2 has the deed. The loan is in his name, so why wouldn’t he?

Meantime, the actual owner (borrower of record), just signs/notarizes a new deed in favor of you.

In your case, it would probably be wiser to find a real estate contract attorney to help you with the details.

Otherwise, you need to know how to complete the deed and have it notarized, and then recorded.

You could visit the county recorder’s office and look up a recently recorded deed to see what it looks like and how it’s filled out, if the attorney thing is too expensive.

Or if you planned to get title insurance, a title company would have all the paperwork to close on a sub2 deal, and record the deed for you. This will cost you several thousand dollars, and likely more than an attorney would charge to complete the same paperwork, and without insuring the title against defects.


Amazing to watch experts.