I don't care about buying her house, I just feel for her and want to help her out of a difficult situation. She bought the house a few years ago, 200k, low down payment. Boyfriend completely gutted the house and then (i believe) ghosted. House is worth wayyy less now. No money to fix it up, but still up on mortgage payments. Id guess house is worth 50-100k.
Has a oversized lot, alley access, decent 2 stall garage next to the house actually and 3 houses away from a decent school. So there are positives. I am wracking my brain trying to think of options other than short sale or foreclosure.
Any experienced investors here done any creative strategies to avoid a foreclosure type situation. I am thinking selling on a contract for deed to someone who wants to build a shop or huge garage on in the back yard on the alley, and slowly fix up the house over time. Possilby split the lot and sell half if the city allows it.
Thanks in advance for any ideas!
Experienced house flipper. Can't find a good options for this Home Seller.
byu/HenleyShade inrealestateinvesting
Posted by HenleyShade
6 Comments
I’ve seen situations like this where the simplest path ended up being best. Listing it as-is and letting an investor take it on can be cleaner than trying to get too creative.
You’re a good person. Good luck!!
Definitely nice of you wanting to help.
If the house is worth much less than the mortgage now, sometimes the best move isn´t fixing the deal but helping her avoid losing more money over time.
I usually look at whether holding the property makes sense long term. Or if restructuring the loan, or selling early would reduce the damage.
Maybe talking with the lender early about hardship options. Or selling part of the lot if zoning allows it.
Take a position in the property in exchange for renovating for a sale, if there is upside.
Can you help her fix the house up with your own money and split the equity increase difference assuming there’s room for profit for you?
ie it’s worth $100k now, you put $50k in and sell it for $200k. She gets $125k you get $75k, obviously before any fees. Reduces her loss and gives you something for your effort.
Worth 50-100k because of the gutting or did she also overpay?