If she really is elderly, you will find they don't like to proceed with change, and delay.

She's currently behind in payments and taxes but the bank hasn't started any foreclosure proceedings (yet).Facts: She recently refinanced them un 2008 and pulled out a lot of equity, not all of it but most of it to cover medical expenses.

I contacted the mortgage owner and discussed how to proceed.

It sounds like to me the seller took the insurance proceeds and doesn't want to rebuild so is selling for lot value at 50,000.I guess maybe they are saying 20k to tear it down and 50k to buy it with another 130k to build a new house giving you a value of around 500k or 300k equity.I would think that the cost alone to build would run 200k to 250k but I am not a builder and I do not know what it costs per sq ft there or the size of the new build.

Perhaps your brother's money could be used on the fixup and you could prepare a separate contract to pay him half of the proceeds when you do sell the property but read the rest of my post first.It sounds like you want to keep it as a rental but you didn't include many details about who is doing what on that.

While it is unfortunate I'm afraid this thread (like several other) will take the bash the wholesalers route.  

If you decide to proceed, record everything. 3) Many ways to go about this but you should consult an attorney before even going over there to review your options but you will likely have 2 main options all of which lead to him moving out: - You can go it the nice way and offer keys for cash, you pay him (an amount less than you would pay for legal fees) to move out; the contigencies are that he must move out all of his belongings, sign a termination, and you pay him on the day he leaves at the door as he is moving out (you then change the locks) - he's out and you have a signed termination, the end. - You can go it the more heavy handed way and you will likley be able to file for an emergency eviction becuase your property is being destroyed, to do this you should take photos of the damages during your walk-through. 

@Stephen Kleyn Did you proceed with the mentorship program?

My insight as to how to best proceed may be of value to a buyer or seller or both, but that value can not be justified beyond the usual and customary cost associated in transferring title.

I also think I'm probably less risk averse than most people when it comes to things like this...I don't mind risking a lien or a pissed off contractor.That said, this is how I'd proceed (though I'm not saying it's how you should proceed):1.