Subject To Facing Foreclosure

I am amazed how some people react!

Here is this house, that I wrote about in earlier posts.
House FMV 80-90000 in present condition
Repairs about 52000 (could be a little less, not much less though)
Mortgage 42000
Payments are $560/mo

After clean-up and repairs it will sell easy for 110-120000, it is on 5 acres and has a big outbuilding that would hold 4 cars.

The house is a 4 bedroom, 3 bathroom, attached 2-car garage, large linving and kitchen w/dining room which has French doors opening to a patio. Central heat and air, all appliances would stay, incl. blinds, curtains.

Every time I meet them they spring me another surprise: first, they are behind on 2 payments, 3rd will be due on Sept. 1st.
They have a judgement against them ($ 8,000.00), but no lien on property.
They own some 4 pieces of real antiques, which aren't in really good condition like everything else.

They told me last week that they wanted to get rid of the house and would move into a trailer they have on some land.

Over the weekend I called and asked them if the light, water, gas bill were current or behind. They are all 1 month behind, and the propane gas tank had been taken away, no gas. The tanks are rented in this area.

They live on his income of 3 days work a week at a department store, pushing carts.

I went over today and I thought I had a very nice and humane solution for them:

I buy the house today for $ 10.00, we can close tomorrow if necessary, leave the 4 pieces of antiques. I will take care of the three mortgage payments to bring that current, pay the light and water bills to bring them current and have them signed over in my name. I suggested they move out in 1 week to the trailer home, so I can start the repairs and clean-up, so I can sell the house as soon as possible.
I would up the down payment, and give them $ 3500.00 for the antiques (an organ, a chair, a sofa and an armoire, I researched for the values on those and gave them the lowest value because they are really "distressed" after I sell the house, so they would have some money in hand.

The lady said she would need at least $ 10,000.00 because she owes her daughter $ 6,000.00 and some other people were also calling in the loans they made to them over the last year, and besides that they do not own a trailer! Well, they have nowhere to go. Since I am about to buy an older but very nice single wide with 3 bedrooms and 2 nice bathrooms on rented land, which is in excellent condition, I offered to sell it to them for 12000, without down payment and monthly payments of 350, they could either move it to their land or leave it there on the rented land, which is 100/mo. At least they would have a decent place to live and I would do that to help them out, I feel real sorry for them.
But... they want 10,000 to pay her daughter the 6000 they owe her, and they thought about buying a MH for 15000!

I think they are in deep denial of the real facts of life. I left them thinking it over and to give me a call if they decided to go ahead and sell me their house so they would not have to face foreclosure.

I know it would be quite risky selling them that single wide for 12000, but I believe everybody deserves a chance, even after screwing up the way they did.

Anything else I could have done?

Ladybug

[ Edited by Ladybug on Date 08/18/2003 ][ Edited by Ladybug on Date 08/18/2003 ]