My wife and I currently have a multifamily under contract and will be purchasing with an FHA loan. We will also be using the FHA rehab loan and together the loan amount will be approximately $240k. We have been preapproved and are currently waiting for the contractors bid on the rehab work.
I was at a yard sale today and the owner of the home is about to foreclose. It's going up for auction on the 29th of Nov. He says the lender will take $55k for the property. The property appraised at $115k two years ago and I'd say in this market it's now worth $125-$130k. Another detail is that it's a habitat for humanity home (still trying to figure out exactly what that means).
My questions are;
- How does the habitat for humanity issue affect the foreclosure deal?
- Will the foreclosure deal affect the financing for the property that I currently have under contract?
- What would be the best way to take over the mortgage payments from the seller who is being foreclosed on?
Thank you.
