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Buying mothers house not sure where this goes

Regular Contributor

Buying mothers house not sure where this goes

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.

CH 7 BK discharged 05/15 goal scores 680 across the board
Current Score: TU 657 EQ 676 EX 657 FICO pull 03/20/17

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3 REPLIES
Regular Contributor

Re: Buying mothers house not sure where this goes

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.  




In The Garden Until 11/01/15 - Last App 11/03/13
Message 2 of 4
Regular Contributor

Re: Buying mothers house not sure where this goes

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 Smiley Happy

CH 7 BK discharged 05/15 goal scores 680 across the board
Current Score: TU 657 EQ 676 EX 657 FICO pull 03/20/17

 photo cabelas 3700.jpg
 photo Disney siggy 5000.png photo SWP Premier 2500.png photo virgin america 2300.jpg photo lexus 2500.png photo toyota 2500.png photo kays1500.jpg photo hsn4000.png photo GoodSam 1000.png photo buckle 900.jpg photo af 250.png photo valero.jpg photo fingerhut.jpg
Message 3 of 4
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Frequent Contributor

Re: Buying mothers house not sure where this goes

I would suggest that you meet with a real estate lawyer.  

 

From your post their seems to be a lot of money parts in your transaction.  

 

 

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