Potential Subject 2 Deal ( is this a good deal?)

[VAUGHN BLACK]

Hi BP! I've been reading and watching investing pod cast on and off over the last couple of years and finally I'm ready to take some action. 

I found a home owner that is currently in the foreclosure process in PA. Her husband passed away just over a year ago and the mortgage had not been paid since just before his passing. She moved out of the home but all of her husbands things were left behind. She has no means of making payments and was advised by her attorney to just let the back take the property. Please let me know if this sounds like a good deal.

Is this a good structure.

- ARV is 137k - Needs $15k in repairs (the home was built in 1975 and had not been updated)

- the home owner owes about $90k after added fees as reflected in a notice she received earlier this week.

- Mortgage - Payments were $560 in the past.

I would like to take the property over using Sub-2 then possibly  update then us as a rental or sell as is to a whole seller. 

I offered her her $5K to part with property

Is this the correct strategy to use? Any suggestions would be appreciated.

Thanks in advance for your time and support!

[Ron S.]

Do you think the home would sell for at least $95K in the foreclosure sale? If it would, I wouldn't touch this deal with a ten foot pole.

I'm guessing here but, sounds like an elderly woman that lost her husband and is about to lose her home. I get that she's already moved but she's in distress and possibly under duress. What a horrible situation to be faced with.

I'm not saying that you have any bad intentions but let's say a son or daughter comes out of the woodwork six months down the road and claims you took their inheritance? You didn't, but what if they say you did? They will say you took advantage of a grieving widow for your own personal financial gain. How would you defend that? You did not expose her property to the highest potential buyer's market. You kept it off listing and took the equity in the property for yourself. I'm not saying there is anything wrong with that but is there a chance someone else might?

To avoid that allegation, wouldn't it be better to help that poor woman out by introducing her to a competent agent to list the home and sell it? She would surely net a lot more selling it that she would by signing the property over to you wouldn't she? After all, you are trying to help her aren't you?