Author Topic: Foreclosure question (KY) - time sensitive - asking for a friend  (Read 638 times)

anonymouscow

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Foreclosure question (KY) - time sensitive - asking for a friend
« on: February 05, 2019, 09:51:43 AM »
Hello, I hope it is okay if I ask this question for a friend, you will have to forgive me, I do not know all of the details.

This is in KY if it matters, it looks like the person's mom died and left the house to them (not sure how long ago). They did not transfer the house out of the mom's name.

The mom had a home equity line that they were paying down after the mom died. Medical issues caused them to fall behind on payments.

They have until Feb 6th to answer the foreclosure notice,  they owe 30k, they have bad credit, they don't have funds for legal help.

I have zero experience with the foreclosure process, does anyone know if there is a way to delay the process and maybe they can raise the funds for legal advice in the meantime?

Not sure how feasible this would be, If I was able to come up with the 30K, would it be possible to pay off the home equity loan and then become the lender? More in terms of the legal framework for the house as collateral and not just a personal loan (I know I might not be using the correct terms). Or would this just be too much trouble considering the house is not even in their name?

Thanks for any help

rubybeth

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Re: Foreclosure question (KY) - time sensitive - asking for a friend
« Reply #1 on: February 05, 2019, 10:12:08 AM »
I think you don't really have enough details and if this friend doesn't have good credit, I would be wary of getting involved. Loans to friends aren't generally a good idea.

affordablehousing

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Re: Foreclosure question (KY) - time sensitive - asking for a friend
« Reply #2 on: February 05, 2019, 04:44:24 PM »
If it goes into foreclosure, it would need to be sold to the highest bidder, which could likely be the bank, then it gets marketed as real estate owned by the bank. While there are fees that accrue, if the house is sold for more money than the debts that should get disbursed to your friend's mom's estate, then hopefully trickle down to him or her. Perhaps that provides some comfort, perhaps not. Perhaps you should buy it at the foreclosure auction, then lease it back to your friend. Perhaps you can get a deal on the house?

rubybeth

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Re: Foreclosure question (KY) - time sensitive - asking for a friend
« Reply #3 on: February 06, 2019, 06:51:28 AM »
If it goes into foreclosure, it would need to be sold to the highest bidder, which could likely be the bank, then it gets marketed as real estate owned by the bank. While there are fees that accrue, if the house is sold for more money than the debts that should get disbursed to your friend's mom's estate, then hopefully trickle down to him or her. Perhaps that provides some comfort, perhaps not. Perhaps you should buy it at the foreclosure auction, then lease it back to your friend. Perhaps you can get a deal on the house?

I could see that maybe working. Does the friend even need the house? If not, I'd probably let it go. My family just went through the process of selling a grandparents' house after their death and it's a lot of work.