Purchasing an In-Laws Primary Residence

[Dylon May]

So, basically, my wife's childhood home is in a state in which I cannot explain. I know for a fact that it has been through the pre-foreclosure process at least three times, and I know that my mother-in-law reaches out to companies to help her with foreclosure proceedings. I really do not know, because they do not share that information with me. My wife tends to do her paperwork for her mom and I sometimes find documents around the house regarding bankruptcies, foreclosures, and personal information that my mother-in-law sends to other companies to help her.

Before my real estate investing adventure I told my wife that I would love to buy her childhood home. It sits in a great place, great neighborhood, and this home was the first built there. I know firsthand exactly what needs to be done to the house, and I know firsthand what has been done to the house as far as renovations.  The bank WANTS this house back, but I want to buy it. I expressed to my wife that I would rather keep this home in the family than let the bank take it back and sell it to somebody else to make a profit off of it when we can do the same thing and keep the income in the family.

My question is, where do I begin, what should I be looking for? Who should I be reaching out to and what types of questions should I be asking? I want to buy this house, and maybe rent it out after we have satisfied the owner occupant requirement.

Tell me, what should I do? What do I need to do to make sure that I'm in a better position to purchase this home and keep it inside my family?

[Chris John]

@Dylon May  It's awesome that you want to help your wife's family.  Personally, I'd discuss this with my mother-in-law with my wife present.  If she expresses interest, you may be able to bring her current (or current enough) and buy yourself time to then just simply purchase it from her without the threat of foreclosure.  If she doesn't seem interested, I would steer well clear.  For me, there are too many opportunities in real estate to buy my mother-in-law's house out of foreclosure against her wishes.  That would create a lifetime of drama. 

Try to remember that she's probably feeling embarrassed and may not be thinking completely rationally, so proceed with caution. 

Good luck!