Author Topic: Aunt abandoned house. Should i buy it from her? 120kish market value.  (Read 3018 times)

Emergo

  • Stubble
  • **
  • Posts: 177
My aunt and her son abandoned this house located in a decent neighborhood. They went to the Philippines. I think the house hasnt been paid for 3 months now because they left 3 months ago. Should i buy it from her so it doesnt go to waste? Is it close to foreclosure? Should i convince her to change her ownership to me and just continue the payments? Or would that lead to trouble if they decide to come back and try to take the house from me? Should i wait for foreclosure and buy it? I plan to rent it out to this family I know, for about $1k (not sure how much i should charge them). And my dad will live there too and contribute $300. My aunt has had this house for more than 8 years i believe.

It has one master bedroom. Two normal size rooms. One tiny room. And one shed in the backyard which my dad will live in.

Whats the best way to go about this? Thanks.

JZinCO

  • Pencil Stache
  • ****
  • Posts: 701
Re: Aunt abandoned house. Should i buy it from her? 120kish market value.
« Reply #1 on: December 24, 2015, 03:28:48 PM »
Sorry, I do not have much experience to contribute to your overall post.
One comment. Shed in the backyard? I assume it's fully functional as a living space. This could be an issue depending on local regs so clear that before you start scheming up 'what ifs'.

Emergo

  • Stubble
  • **
  • Posts: 177
Re: Aunt abandoned house. Should i buy it from her? 120kish market value.
« Reply #2 on: December 24, 2015, 03:32:12 PM »
Sorry, I do not have much experience to contribute to your overall post.
One comment. Shed in the backyard? I assume it's fully functional as a living space. This could be an issue depending on local regs so clear that before you start scheming up 'what ifs'.

Yes, i told the family and theyre okay with it. It has its own AC unit.

Jack

  • Magnum Stache
  • ******
  • Posts: 4734
  • Location: Atlanta, GA
Re: Aunt abandoned house. Should i buy it from her? 120kish market value.
« Reply #3 on: December 24, 2015, 04:59:44 PM »
Sorry, I do not have much experience to contribute to your overall post.
One comment. Shed in the backyard? I assume it's fully functional as a living space. This could be an issue depending on local regs so clear that before you start scheming up 'what ifs'.

Yes, i told the family and theyre okay with it. It has its own AC unit.

The local government is going to be less concerned about AC and more concerned about indoor plumbing.

Emergo

  • Stubble
  • **
  • Posts: 177
Re: Aunt abandoned house. Should i buy it from her? 120kish market value.
« Reply #4 on: December 24, 2015, 05:34:51 PM »
Its just a bed in there. He goes inside for the restroom.

Another Reader

  • Walrus Stache
  • *******
  • Posts: 5082
Re: Aunt abandoned house. Should i buy it from her? 120kish market value.
« Reply #5 on: December 24, 2015, 05:55:30 PM »
In your shoes, I would communicate with your aunt in the Philippines.  Find out why she left without selling the property.  Likely the amount owed was more than the house is worth.  It would not make sense to "buy" the house from her if that is the case.

However, if the house is worth more than she owes, you could try to salvage the situation.  Start by researching the County records to confirm she is the owner and to see if any notice of trustee's sale has been recorded.  You may be able to bring the loan current and keep the house from being foreclosed.  You will need to buy the house from your aunt and get a mortgage in your own name.  The current lender will likely not allow you to assume the loan. 

Emergo

  • Stubble
  • **
  • Posts: 177
Re: Aunt abandoned house. Should i buy it from her? 120kish market value.
« Reply #6 on: December 24, 2015, 10:16:05 PM »
She left because she doesnt have the means to pay the house anymore. She didnt have a job.

By keep the loan current, you mean not have a full price to pay for right?

What is needed to buy the house from her? A large down payment?

Do you guys think this is a good investment?

Megma

  • Pencil Stache
  • ****
  • Posts: 716
Re: Aunt abandoned house. Should i buy it from her? 120kish market value.
« Reply #7 on: December 24, 2015, 10:57:59 PM »
By "bring the loan current" he means that you'd need to pay the back payments, so if she hasn't paid 3 months that's 3x whatever her payment is.

There aren't really enough details to say if this is a good investment or not, I have a hunch it's probably not. You say the house is worth 120k market and you'd rent for a total of 1300/mo, ok, fine. But:

How much does your aunt owe on the house?
How much will you offer for it? The bank will probably not let her sell for less than she owes and if she could seek it for more she presumably would not have abandoned it.
Do you need a property manager?
Have money for a down payment? Can you get a loan?

forumname123

  • Stubble
  • **
  • Posts: 126
Re: Aunt abandoned house. Should i buy it from her? 120kish market value.
« Reply #8 on: December 24, 2015, 11:43:12 PM »
Yes you have to find out what she owes, and get proof that she actually does own it before anyone here can help you.