Family emergency-Sheriff Sale

[Nyashia LaFate]

Please help BP family:

My grandmother suffers from Dementia(no power of attorney) and she currently has gotten behind on her water bill and other city services.

The bank will not refinance (mortgage not assumable)and her home will be going up for Sheriff sale next month.

We want to see if I can purchase her home and use it as a rental property.

Could she request a Short sale?

Can we pay the city the 12,500 and work out an agreement with my grandmother?

Any ideas. Any insight would be greatly appreciated.

Here are the details on the House:

Mortgage remaining $28,000(no escrow)

ARV-$100,000

Actual repairs cost $40,000(mold and new roof needed)

City Sheriff Sale $12,500 (water bill, taxes (due to no escrow)and fines)

Currently listed as abandoned property by the city.

Average rent in the area: $1500

Let me know if you require any additional details.

[Mark Collard]

@Nyashia LaFate - not knowing specifics of how close you are to your grandmother, and whether some of my recommendations are appropriate or not, they are being shared to empower you around what I know to be my personal experience.  I also am NOT familiar with Delaware statutes and judiciary vs non-judiciary, so I always recommend getting legal advise, but with any attorney, consider making sure you find one to help you and support great, empowered decisions, not one that puts fear into you about what can NOT be done.   

So, a power of attorney is NOT necessarily necessary.  I have had great success in simply using a 3rd party borrower's authorization form for accessing all of the mortgage information, and historically, I have been able to make payments on behalf of the original homeowner, including catching up $12,500 with the city, etc.   What that may look like for you all, is based on relationship with grandmother and the family.  

Next point, don't worry about assummability, as it's NOT necessary either.    If you did a subject to or a lease option, you can control the property without worrying about any of this.  If you are concerned about subject to and due on sale clause issues, you can consider a title holding land trust, with protects the title in a land trust, allowed for my the Garn-St Germain Act of 1982, and then allows you to transfer beneficiary interest of the property to you, or anyone else, outside of your grandmother.   This might be a true, viable option.  

Next, I would address the condition of the property and the sheriff's sale.   Not knowing the actual needs of the property, but that you state  $40k for mold and new roof, etc... I would say that you need strong, professional bids/estimates on these items and determine the TRUE scope of work necessary to bring the house up to standards, before you consider paying anything or reinstating the loan with the lender or any of the above.   Again, I'm not familiar with Delaware statutes, so I may be stating this incorrectly with my language. 

Lastly, the property sounds like it could be a nice rental property, but you have to consider whether the $40k and trouble of the mold and roof is worth the investment, along with $12,500 to the city, plus whatever other costs, and whether it's worth your time. 

I hope this is helpful to you.   Thanks, Coach Collard