looking for the right investment idea to suit my situation

[Jeffrey Smith]

So i was "driving for dollars" when i came across this property with a sign for sale by a realtor but decided to look up the owner and call him instead...When i did he explained to me that he was actually being forced sell or be foreclosed on...To add insult to injury the man has no family & is a paraplegic...I would really like to help him and what i came up with was "seller financing" or "subject to"... houses in the area like his are going for 325,000ish(zestimate $386,417),he owes $225,844 and they are asking $269,900...I am a "newbie" but i thought that maybe it would be a good way to help him help me in my first investment as well...House is a raised ranch with a legal apartment down stairs but the idea is that he wouldn't have to move, him pay me and perhaps rent out the downstairs... His time is ticking he fears and i'd like to help but i don't want to sink myself either...

[Jan Kerr]

@Jeffrey Smith the others advice on not to rent to him is sound. I've dealth with this before. You want a clean break and rentinig back to the seller always muddies the water. If the owners never leave the house, they will not be able to let go of it. In their mind, it will always be their house. Down the road, they may recover financially and want it back or begin to resent selling it to you for less than its full market value and dispute the transaction, lableing you as a predator. I think you are on the right track and your heart is in the right place. I'd want to help him too, but I'd structure it in a way that helps both of you move forward. First, do you know how far behind he is and how much money it would take to not only cure his default, plus any late fees and additional accrued interest? You will also need to be able to buy your own title policy and Insurance, closing costs, etc. My recommendation is to find out what his income and expenses are and find out what he really needs and what he can afford as his next living space. Then help him find it and offer to pay his moving expenses to get him into it. You will have helped him move on and get settled in a place that is affordable for him and given yourself a clean transaction with some equity. You may be able to convince him to sell to you with Seller Financing by setting up a Wrap Around Mortgage where, after curing the default, you are paying the future payments to his lender and holding a Deed that you can record when it is time for you to refinance to pay his lender off once and for all. Usually no more than 5 years from now. For both of your protection and peace of mind, all paperwork and financial dealings should be handled very formally, going through a title company and escrow company. You send your monthly payments to the Escrow Company who forwards it on to his mortgage company and provides you with proof of payments and an accounting of all of it at the end of each year until you refinance and pay it off. Do not do the deal if you are not given a Deed. Never, never, never invest money into someone else's house.