06-30-2013 03:36 PM
Fellow Fico'rs/Mods need some help...first I have no idea where to post this question so Im hoping the Mods will help. Second, I currently rent my mothers house from her due to her moving to a smaller place and being in a chapter 13. The situation is I would like to buy this home however what she owes on it is no where close what it's valued at..hince the chapter 13. Her loan was with HSBC however was recently sold to another provider and with that she hasnt paid taxes, insurance (we have renters) or a full payment (due to chapter 13) in over a year. We love the home and would like to keep it in the family however the situation is this 1. she owes 110k on the home the house across the street sold for 60k (foreclosure) in january of this year there is another 2 doors down that sold for 159k in 2004 however is currently a reo property on sale for 77k, I'm wondering which process I should have her go through so we can purchase the home because as it is right now the home values are way down (slowly coming back) so a short sale or deed in lieu with the agreement of a 6 month rent arraignment? I'm sure there will be more questions and they are welcomed. We just want to make a move in the next 3-5 months before the values and interest rate get stupid again. Any and all help/comment would be greatly apprecitated.
06-30-2013 04:18 PM
I don't think you have any options while it is under water. The bank won't short sale the home to you because you are related and they will consider it an "arms length" transaction. In other words, it could look like she is benefiting off of the sale of the home by short selling it to her daughter.
06-30-2013 05:54 PM
thats sorta what I was afraid of...I was thinking that maybe because she wasnt making full payments (5% in fact) that the bank would be willing to work with us. So I guess it would be best to go deed in lieu and hope that we get it. I just dont like taking that kind of chance...thanks for the info, it's good to get additional perspetives on situations