$6 House - Repercussions

[Michael Johnson]

Hi BP community

I know we're all out there looking for a good deal. Every once in a while an unbelievably fantastic deal shows up. Imagine being the person who found a quarter million dollar house for $6 (actually more when you add in the penalties and interest). Here's the story of exactly that:

http://abcnews.go.com/US/wireStory/judge-upholds-sale-widows-home-bill-23503592

How does this make us look? Are we ruthless land grabbers who are out to make a fortune on the backs of "innocent" victims, or are we helping to make the world a better place by assisting people who are in a bad place financially? Maybe somewhere in between. I'm curious to see what the thoughts of the general BP membership are on this. I know what my thoughts are, but will save them for later in the thread.

Questions:

1. Is this ethical?

2. Should the investor have worked with the homeowner?

3. Is this going to make our job harder?

4. Is there more to this story I haven't found? (I've looked all over for info on this and have a lot more than the single article I posted.)

Bonus question - Are you envious of this deal?

-Michael

[Michael Johnson]

With my new set of REI eyes, I see this differently than the general public might. Politics aside, people are going to see this as someone "stealing" a house for $6. We all know the house wasn't purchased for that price. Someone got it for $116k. That person could turn around and resell it to her for $150k, make a nice profit, and then the woman would very likely have a much lower mortgage on the property. Even with a lease option, she'd be in good shape while this gets out from under her credit (but I'm not sure it's even going to be a blemish...don't think it will).

I hate to see such a negative light shined on what we do. Personally, I intend to be as helpful as I can to someone. If she was being an asshat about the $6, then maybe she got what she deserved. I'm curious to see more of the story. Most of what I've found has been her claim she didn't know about it. Apparently her right of redemption had expired. There are a couple of versions with minor changes to them out there. I'm looking forward to reading the final chapter in this novella.