Disstressed Call Need Assistance?
Disstressed call need assistance???
I just received a call from the daughter of the owner of the house which is paid for. He is in a nursing home and not in his right mind to make decisions. They took a loan out against the house for 7,000 which is behind. I didnt have my paper worker handy it was in the car. So I told the lady I would call her back. Her main concern her options, She spoke to a lawyer who told her father signing the house over to her was the only option. She didnt really sound to confortable about that. Sooooo Im about to call her back and wanted to know my options based on the little information I gathered prior to running down my list of questions....
I'm confused the house is paid for but has a 7k loan that behind?
Whose name is the property in?
Clear this up and we can go form here. Sounds like you have a great deal.
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We have been thru a similar situation, only it was the wife of a husband who was in the nursing home.
There are several issues to consider.
First, if her father is in the nursing home, who is paying for it. If there is a state program involved, there might be limitations on selling his house.
Second, find out if there is power of attorney. There might be trust and then trustee responsible for handling everything in case of incapacity.
If there is not a Trust or Power of Attorney. His daughter might have to go to court to establish incapacity, that could be emotionally difficult, and that is the reason she is probably not comfortable with that.
Just, start with that and see where it leads you.
Natalie.
Well your options here are actually kinda limited.
The essential problem is this. When the father entered into the nursing home his assets became attachable by the nursing home to pay the nursing home bills. So even as we speak the father is incurring $3 to $5 thousand per month in nursing home bills. Eventually he will either leave the nursing home (at which point the bills will stop) or he will be unable to pay the bill.
When he has run through all his money and assets Medicare/Medicaid will step in and pick up the tab. But in order for that to happen he has to be indigent (i.e. have less than $2,000 in assets).
So no problem, right? Sell the house to you for its debt and he's broke and the state picks up his nursing home tab.
One problem. The state has a security interest in the house so that they don't get stiffed on his equity before they start picking up the bill. That means that in all probablity the house is already not his to sell. Even if he had sold it to you months ago the state could unwind that sale if it was at less than market value on the grounds that it was done "in anticipation" of the nursing home confinement.
That said the policing of this is spotty. Lots of people manage to sell the house quickly and at a big discount and get the money squirreled away where it is difficult for the state to find it (usually in the daughter's bank account) but it is illegal to do so. The Daughter is more at risk than you are but since you are aware of the situation my guess is you have some risk as well.
Who did the Lawyer think the father was going to sign the house over to? The nursing home? The daughter? Him?
At the very least I'd want a legal opinion on the laws in your state.
There are a variety of exeptions to this rule including if the daughter lived with the father for two years in the house in an attempt to keep him out of the nursing home and about a dozen others but without enough data it would be hard to figure out whether any of them apply in this circumstance
Or you can take JM's advice and go for it and hope the shit doesn't hit the fan later.
Quote:
On 2004-12-15 22:05, commercialking wrote:
Or you can take JM's advice and go for it and hope the shit doesn't hit the fan later.
Well commercialking,
Another round of bashing - what goes around comes around - so let's get it on with yet another round of attacks or better yet why not keep the focus on teaching - ball is in your court.
As this is what I stated:
I'm confused the house is paid for but has a 7k loan that behind?
Whose name is the property in?
Clear this up and we can go form here. Sounds like you have a great deal.
I did not tell this person to go for it!
Note my last statement
Clear this up and we can go form here. Sounds like you have a great deal.
[addsig]
Quote:
On 2004-12-15 22:40, JohnMichael wrote:
Quote:
On 2004-12-15 22:05, commercialking wrote:
Or you can take JM's advice and go for it and hope the shit doesn't hit the fan later.
Well commercialking,
Another round of bashing - what goes around comes around - so let's get it on with yet another round of attacks or better yet why not keep the focus on teaching - ball is in your court.
As this is what I stated:
I'm confused the house is paid for but has a 7k loan that behind? They took a loan out to fix the property I guess witht he equity.
Whose name is the property in? The fathers
Clear this up and we can go form here. Sounds like you have a great deal.
I did not tell this person to go for it!
Note my last statement
Clear this up and we can go form here. Sounds like you have a great deal.
I called her back and the phone was busy for most of the night. I will keep you guys updated and A BIG THANKS FOR THE SUPPORT.
A good place to start would be at their web site http://www.freddiemac.com/
By contacting them at the forefront of the foreclosure process you have a better chance of getting better deals before it gets in the listing agents hands.
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Its already with the listing agent. The problem is the listing agent will not let me make an offer until, they are done with cleaning of the property, BPO's etc.
The orig loan = 153k in 09/1997
Forclosed at = 175K in 09/2004
FMV = 185 K
Any suggestions?
Okay they are more then likely not going to rehab it. They might clean up the yard a bit etc but if there are repairs then there are repairs. They will get a BPO for the current condition of the house. They will then list it at the BPO.
The loans that where on the property mean nothing anymore. For example I got a property I am thinking of buying down here.
FMV: 85k
Foreclosed on : 74k
The house is trashed and needs lots of repairs.
The list price I have heard will be around 40k
I was told by the agent that the ammount that was owed has no bearing on what the house will sell for and this goes for all foreclosures/REO they will sell it at the current fair market value ...not a sub 2
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