The Strangest Rejection I've Ever Received

The Strangest Rejection I've Ever Received

Rental Property Investor · Baltimore, MD · Member since 2013 · 281 posts · 257 votes

I recently had an interesting rejection from a respondent to my direct mail campaign...by far the strangest one I've received.  Hope to get some creative ideas on how I can respond to the owner so I can buy her house.

The property owner wants nothing to do with the property and prefers to see it lost in foreclosure rather than become involved in any way (including by selling it).  The owner is an elderly widow who is refusing to accept any offer for her house because her deceased husband advised her: "if something happens to me, don't get involved with the rental properties."  The property was mortgaged and under water...so he probably didn't want his wife to get chased by creditors.  But after his death the bank wrote off the loan as bad debt and filed a release.  So the widow now owns it free-and-clear...and she is allowing the tenants to live there for free because she refuses to get involved by accepting rent payments. The tenants are ruining the house, not paying bills, and the house is about to be lost for a small tax lien.

I explained all this to the widow...that she owns the house free-and-clear and that a sale would help preserve the wealth her late husband worked so hard to create.  She won't budge!  She insists that her husband warned her not to get involved, so she is just going to let it go in foreclosure.

How can I change her mind??? We're not talking about a lot of money...it's a low-income rental in Baltimore City worth maybe 15-25k.  But still enough money that it would help her family.  Any ideas would be greatly appreciated!

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Investor · Canton-Akron, OH · Member since 2012 · 917 posts · 477 votes
10y

A thought. 

Find someone she trusts and respects. Maybe her pastor, one of her children, sister, brother. 

Someone she trusts that could reason with her. 

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  • Investor · Canton-Akron, OH · Member since 2012 · 917 posts · 477 votes
    10y

    A thought. 

    Find someone she trusts and respects. Maybe her pastor, one of her children, sister, brother. 

    Someone she trusts that could reason with her. 

  • Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
    10y

    @Matt Schelberg,

    ... or, let it go to the tax sale and bid on it. Just bypass the widow completely and entirely legally.

  • Real Estate Agent · Baltimore, MD · Member since 2014 · 215 posts · 123 votes
    10y

    @Matt Schelberg tell Ned to help you get it lol... J/k but I like Dell's idea. Maybe you can find the lawyer who did the probate case from the MD Judiciary and explain to him/her what her client is doing and maybe he/she can talk some sense into the woman. She will probably trust her lawyer a lot more than a stranger. 

  • Asheboro, NC · Member since 2016 · 31 posts · 16 votes
    10y

    Sounds to me like you are fighting a dead man. LOL Seriously, that's a tough one

  • Rental Property Investor · Baltimore, MD · Member since 2013 · 281 posts · 257 votes
    10y

    Thanks to all for the ideas!

    @Dell Schlabach Your idea to encourage the seller to seek the counsel of a trusted family member is a great suggestion.  This will be my next move.

    @Gabriel G. Great idea to find the probate attorney.  Just checked with the city and unfortunately the family did not identify any attorneys or personal representatives for the estate. But I will recommend to a family member that they seek the counsel of their family attorney. 

    @David Dachtera Tax lien is sold! This baby will enter foreclosure proceedings in November. But I could always offer to buy it from the current lien holder.  Might be worth a shot if other options fail.

    @Joe Baker Fighting a dead man. You ain't kidding.  I am a complete stranger trying to convince this lady that I understand her dead husband's intent better than she does.

  • Lender · Greater LA/Orange County area, CA · Member since 2012 · 3k+ posts · 3k+ votes
    10y

    When I have an opportunity that I wish to pursue, I will step back and use the ADE model. I ask myself, 'How else could I approach this?'

    Asset: Do I want the asset (the real estate) or just the profit?

    Debt: Is there an opportunity to purchase a mortgage? Any other secured debt (AOJ)?

    Equity: Is there anyone else who is a claimant to the equity? Another heir? A contractor or materialman?

    Also, there may be merit in a nurture campaign whereby you contact the spouse and find a means to engage her and impress her with how she can help others in her family by merely allowing you to help her. Until you know her and understand her motivations, this method will be pretty challenging. 

  • Professional Auctioneer · Baltimore, MD · Member since 2015 · 1k+ posts · 1k+ votes
    10y

    Offer to manage the property for her - help her get her rent or evict the tenant - talk to he relatives or lawyer - show her how you can help her - but make full disclosures that you are in this deal to make a reasonable profit.

    Take is slow - be kind and understanding - show her that she has money coming to her - she can keep it or give it to the church or other charity.

  • Developer · Atlanta, GA · Member since 2015 · 64 posts · 18 votes
    10y

    When you are talking to her, are you mainly asking questions instead of statements?

    I like the idea around getting her peers involved, but if you don't have access to that. Using questions to ninja her brain into the realization that she is leading herself into financial ruin is your only shot.

    Here are some examples of that:

    #1 Do you understand a foreclosure or unpaid lien can negatively effect your credit for 7 years?

    #2 [If you meet with her in person] Ask her about her interests...Do you know you can potentially use X profit off of the sale to pursue Y interest more aggressively?

    #3 Do you know that creditors can choose to go after paying your unpaid debt through your children if you pass away? (this is probably too rough, but some people only understand rough)

  • Ned CareyPro Member
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    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    10y

    Just because someone should be motivated doesn't mean they are motivated. 

    I would be stressing that you will do all the work and all she has to do is show up to settlement and receive a check. She can do nothing and get nothing or she can do nothing and you will give here something. 

    Does she have children that could use money for school, or perhaps she would like to give to charity.

  • Flipper/Rehabber · Tacoma, WA · Member since 2016 · 100 posts · 34 votes
    10y
    You know, she doesn't care about rent and financial ruin because it's not worth it to betray a (perceived) promise to her dead husband. YOU won't win this illogical emotional game. She'll be the only one to change her stance, and it might take listening to her talk about it for awhile. Someone else might need to do the nurturing there, too. Or find a way to help her see herself as your beneficiary, doing you a charitable deed by transferring you the property, like her husband would have been proud to see her do.
  • Accountant · South Windsor, CT · Member since 2015 · 58 posts · 20 votes
    10y
    Why doesn't the property manager want anything to do with it? Try seller financing? An inspection may answer my first question. Good luck
  • San Antonio, TX · Member since 2009 · 3k+ posts · 1k+ votes
    10y

    Sounds like she's just honoring her husband's wishes. As the home nears foreclosure, she may change her mind. Just be courteous and keep in touch with regular follow-up. Good luck! 

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