Help A Kansas City Missouri Resident
I am trying to help Ann in Kansas City that owns 1 prop free and clear. Her daughter is living in that house and paying rent, and will sign a contract to guarentee that she will continue to do so for up to five years if need be. Ann has a small mortgage on the home she lives in and does not want to leave her home either, but is willing to sell it and continue to reside there and pay rent to the new owner under contract for up to five years if need be. Anns goal is to pay about $6K in back taxes before leins are filed by the county on her properties. She needs help accessing the equity in her houses to pay the back taxes and get out of debt ASAP. If interested in an investment opportunity or if you have any good ideas it would be very helpful to hear from you. Ann would do a HELOC but her crdit is shot due to unpaid medical bills that her insurance would not cover.
<IMG SRC="images/forum/smilies/icon_rolleyes.gif"> 
[ Edited by adk on Date 11/21/2003 ]
HELOC - Home Equity Line of Credit Access the line of credit to pay off the taxes and make those payments from the rent that is coming in from the daughter.
For the investor, it presents a possible world of headaches to purchase from, and lease option back to the same person. How do you evict? If she doesn't have the money to pay back taxes, how is she going to come up with the security deposit?
It's nice to be able to help out others when you can, but there are many potential problems for the investor in this situation.
Have the daughter move out and live with mom. Mom get's creative and sells the property with attractive seller financing with a down payment of the (amount due to pay the back taxes).
Result: House is sold at top dollar, Monthly cash flow from the sale will pay the past due medical bills, improving credit, and with the daughter paying a portion of the existing mortgage a greater chance to pay down the medical bills.
Eric & Rosa
[addsig]