If the property goes to auction it'll get run up by other bidders and may loose it's value or lost to the first lin cetificate. 3 years is the typical time frame so I'd work with the son and see if there's a way to strike a deal. 

@Gary Sullivan   I for one think that paid for one on one mentoring with someone you trust and like is of a great amount of value as long as you can afford it.there is only so much one can learn reading on line ... and most pod cast just gloss over topics and really don't get into the nitty gritty... a good mentor paid for or not can really short cut the learning curve and probably the money you spend on a paid for coach or mentor is money you would have lost trying to do it on your own.. and failing because you did not know what you did not know.I for one thinks its horrible advice when people on BP say to not pay for education save that money and buy a house... even if you lose money your getting hands on education..

We are really lost. 

Nothing personal, my opinion, that is $15K lost a year if he lives in the basement and $20K lost if he lives in the main.Also highly recommend getting your financing in place before you start placing bids on properties.

Well, just using the numbers you gave it would take 12.5 years ($15k/$1.2k) to just break even and then you have the lost investment income from the $15k for that time, so from a pure investment standpoint I would suggest against the garage.

In the end, we lost about $30,000.

A total of 3500 dollars, sound good for the owner who just lost his job.

Myself and a handful of others here on BP have been trying to help out a couple of Denver based investors who got into deals with the same vendor I did in Atlanta ( were I lost a few bucks)  these guys though are going to get wiped out and they find themselves with a crowdfunding loan on their properties.. and as you state it appears that the ground partner may have drawn all the funds and the properties are still trashed.. 

You chopping down their already low commission will resonate in their mind and they might bring the deal to someone else.You saved 395 but lost maybe 20k in equity in a great deal not being presented to you.If the agency is selling an REO they have to belong to REO bank asset companies and get hit with so many annual fees it isn't funny.

Watch out for New Western, they are unethical and are currently being sued by a friend who is out her $20k non refundable EMD when New Western didn't close the deal in time and lost it.