Home Buying in 60622>Question Details

flynneagles, Home Buyer in Detroit, MI

A family friend's father past away leaving a debt on a house. The Mortgage is more the the market value.

Asked by flynneagles, Detroit, MI Wed Sep 19, 2012

can I approach the bank and put an offer on it? Do I go through a realtor? What options do I have.

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Flynneagles,
Step one is to speak to the family about their intentions for the property. Sometimes, other family members have emotional or nostalgic reasons to want to keep the home. They would be entitled to maintain the mortgage or seek some arrangement first.
Next, if they want the house to be liquidated, the bank would require the home be listed by an agent to draw in the highest possible offer before they would approve a short sale. Their obligation is to take the smallest loss possible and the only sure way to determine this is to get the home on the market at a reasonable price.
If you are willing to pay enough to clear the mortgage, then the estate may be willing to work with you directly and the bank wouldn't have any say in the matter. Your offer may have to be the full remaining loan balance plus all the seller's closing costs. If the property won't appraise for this you'll need bring in additional cash beyond your down payment and closing costs to make up the difference.
I hope this was helpful.
2 votes Thank Flag Link Wed Sep 19, 2012
To put it short: Property will go to the family member if they chose to not take the home then it goes to the bank. The bank will then auction out the home in a foreclosure proceeding where only cash offers are taken. If no one buys it it stays with the bank and gets sold through the regular market at a later date. This one might take some time to be ready for sale. Keep an eye on it and Good Luck!!!
Web Reference: http://www.myownhome.info
1 vote Thank Flag Link Wed Sep 19, 2012
How is your credit? I say fix the credit and buy it yourself!
0 votes Thank Flag Link Thu Sep 27, 2012
This may be more of an estate issue.
0 votes Thank Flag Link Wed Sep 26, 2012
short sell the property and I will let you know the probably outcome
0 votes Thank Flag Link Mon Sep 24, 2012
No you cant. The banks will go through their systems. Its just the way it works.
0 votes Thank Flag Link Wed Sep 19, 2012
Good advice below - One thing to remember with a short sale is that the lien holder might ask all parties to sign an 'arm's length transaction' affidavit. Read it carefully before deciding if you can sign it.
0 votes Thank Flag Link Wed Sep 19, 2012
the owner needs to deal with the bank to see if they will allow a short sale. If so then it needs to be listed and then you can write an offer.
0 votes Thank Flag Link Wed Sep 19, 2012
Talk to the family and see if they are willing to sell it to you. Since this would be a short sale, you will have to then ask the lender if they are willing to sell it to you at the price you want. If no, then they will foreclose on the property. Get an attorney and Realtor involved asap.
0 votes Thank Flag Link Wed Sep 19, 2012
Until the bank is in foreclosure, you need to deal with the seller - the estate in this case. If you want to purchase for below the mortgage, first the estate will have to approach the lender and see what can be done, unless the estate wants to come to the closing with money for the shortfall to pay the note off.

At this point, I believe the seller needs to go to the bank and get their options. Each bank is different. If you are dealing directly with the seller, you should at least have an attorney handle the transaction.
0 votes Thank Flag Link Wed Sep 19, 2012
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