My responses are underlined (Steve)
I have about a million questions ... here are some:
The original mortgage of 80k was in both their names. Current mortgage is 50k. Deed still in both their names....Zillow estimate is 197k...
Tons of bells going off right now... He is giving up 75K for 5K... too good to be true...
He has been stuck with this house for 15 years and doesn't know how to resolve it. I think I can do a better job of doing so
Is the bank going to allow the seller to walk away from the mortgage ?
No. Seller is selling his rights to the deed. Only way he can come off the mortgage is through a refinance.
Are you going to have to remortgage since one person is coming off and one is going on ?
He will still be on
Will she allow it.. or she may not be able to financially .
I am not sure what her financial situation is. I know she has been paying everything for the last 15 years without issue. I know she just put on a new roof
When she finds out that you purchased it will she continue to pay the mortgage like you are hoping she does... You need to be prepared to pay at least half if not all...
I am not responsible for the mortgage. I did not sign or agree to it. Im responsible for half the taxes
If she wants to stay in the house and can not afford to buy you out then what ??
That may very well be the situation. Then my 5k investment will sit until something happens like a death or sale. I could force a partition sale but I don't think Im interested in forcing someone out of their home.
I have several possible exit strategies:
1. Let her buy me out - If she is able to
2. Buy her out - If she wants to sell
3. Sit on it and let her pay down mortgage - She may stop paying and make you pay it after all she is owed seven years of mortgage payments and bills unless there was a written agreement. Remember your seller hasn't paid a penny since he left and he owns half.
If she stops paying the house will go into foreclosure and I would have right to half of any overages. I have zero connection with the mortgage
4. Force a partition sale but I’m not really looking to force anyone out of their house - Will never happen if she hires a lawyer.
I do not know I have to ask an attorney but if I have right to half the house then why not?
5. Sell to another investor - If your unable to deal with her who else is going to be able to.
and did you figure in : "A woman's scorn" that will kill any deal ... (from my wife).
Just throwing it out there...
I am not going to go in there with guns blazing. I am going to approach this with some level of tact and kindness and try to get on her good side. I think I could have her refinance and buy me out for 25k and I would be happy with that. SHe will get full ownership, the guy will be off the mortgage and everyone is happy. If she's really sweet and I feel bad maybe Ill even sell her my rights for 10k I don't know. If all goes to **** then its a 5k gamble and its not that big of a deal
