problem if you buy?? not if you buy it for market value. but according to what you stated the mortgage is greater than what the home is worth. so unless the bank will approve a short sale, the full amount owed will need to be paid. However, you cannot buy the home as a short sale.
if you buy the home, do you plan on occupying a portion of the home with your parents???
if the amount owed is greatly more than the home's worth, sometimes foreclosure may be best.
options: shot sale, foreclosure, pay down the principal then buy the home if the amount owed is only slightly above the home's value, assist your parents with the mortgage payment, rent out the home if it will cover the mortgage payment and buy a home for you and your parents.
If you want to find that new home, give me a call I would help you
I am an agent in the Tracy Area and there are a couple of things that should be considered when attempting to assist your paarents.
1. Short Sales Must be arms legnth transactions- Which means that no family members can be the purchaser.
2. Are you financially ready, and credit wise, ARE YOU READY?
If the answer to question 2 is yes.Then maybe consider purchasing a similar home in the area. You will get the home for an amount similar to what you would have paid for your parents home. Maybe you can get a few upgrades in the process, that your parents don't currently have. Like Granite Counter tops, Tile flooring, ....etc.
I know it is not the same as keeping the family home, but maybe the bright side is, your parents can upgrade.
Please feel free to contact me if you have any questions about finding a suitable replacement in Tracy, I would love to help. You can click on my profile for contact details. Otherwise Good Luck, I hope it works out. Your parents are very lucky to have a daughter like you Raquel.
What might be a more practical solution is to help them navigate through a successful short sale. Concurrently you could begin looking for a viable RE investment that will be beneficial to all concerned. Don't paint yourself into the same corner they're in.
There's so many clean and fresh RE deals out there today. Why continue beating a dead horse?
Given the current market it is difficult to encourage someone to put that kind of capital into an asset that is likely not going to be profitable for quite some time. However, I recognize there may be emotional and/or other reasons why you and your parents want to keep the current property. There are ways to do it; however, it would be fairly challenging.
Additonally, if you already own a home you are going to have to qualify for both mortgages. I believe you really need to talk with a mortgage professional to deem if 1). anything is possible and 2). if you reallly want to make the financial commitment. Your goals are extremely noteworthy; however, it may make more sense to start looking at other options.
The condition for short sale is that it should be an arm's length transaction which means relatives or direct family memebers are precluded from purchasing the house.
Based on your parent's home appraised value and the amount of reinstatement , you could evaluate if keeping the house is feasible. If they are curreent on their mortgage payments and no previous bankruptcy history, FHA has some program that allows borrowers to purchase a new home after short sale. Please contact loan officer who knows about FHA programs.
Lastly, you might advise your parents to do short sale and purchase under your name a different house for them. As you know prices have been at 2004 level and there are many inventories that you could afford.
Good Luck and stand strong !
Nextage Capital Advisors
I would contact the lender to find out what full payoff would be and then contact a Realtor like myself or appraiser to get a handle on market value. At that point you'll have enough information to make a few decisions. If they owe more than the home is worth, in order to obtain financing you'll have to come up with the difference. Lenders typically will not loan you more than the homes appraised value. The other option would be to short sale the home. Of coarse finding a suitable home for your parents to live is of prime importance. You could look into purchasing another home for them, while your parents Short Sale their home, so they have a smooth transition.
I hope this information helps you.
Rocky G.H. Hawrysz
Prudential California Realty
(209) 444-6610 â€“ Direct | Rocky@PruCalifornia.com | http://www.TeamHawrysz.com | License No. 01468373