I am working on a pre-foreclosure where the lady wants to save her house. She needs $4000 to bring her mortgage current. She owes $44,000 on the house, but it is worth approximately $75,000.
My thought was to have her quit claim the deed over to me, in exchange for a $4000 loan to bring her mortgage current. Then, she would rent from me for 6 months (or less) until she establishes income again and can take back the house. In 6 months, she can refinance and/or pay me back plus a nominal fee. If she doesn’t make the rents or if she can’t take the house back, then I will be able to sell the house and/or refinance and make it a rental.
I have never tried it this way before. Can I do it this way??? Have I missed anything? Another question is if she quit claims the deed over to me, do I need to notify her lending institution?? Will they make me finance it right away??
Any advice is greatly appreciated as always!! Thanks in advance…
Shawn