Expert: Sue Bernstein - 2/8/2008

Question
QUESTION: Hi. I moved in recently to a home, as a rental. Across the street there is an elderly woman who recently was declared incompetent by, I believe, the state, and she is now in a psychiatric/elderly facility. She has no children as far as I understand. She has a sister who is in her 80s, but uninterested in being close with her sister.

Here's my question. My husband and I were thinking of offering to buy the house from her. I would expect that she (or her family, due to her mental facilities) would be somewhat anxious to get rid of the house due to their age, and the costs now with this woman being in a facility. We are not wealthy by any means, and would very much like to own a home, stay in Chicago city, and have a home (not condo!). From what another neighbor says, who has known the woman for years, the house is not in good condition, not been kept up well, etc.

I am considering, or at least playing with the thought of making an offer, or a letter of interest, to her/her family, to buy the home at a very low price. Refurbished homes in the area sell for around $250-450,000, and I imagine this would be on the lower end due to its condition and size.

Is it crazy of me to think we could make an offer to them for $150,00 or $175,000, no inspection needed, etc.?

Again, we've never owned a home, and don't know what people do in situations where there is an elderly person with no children, with adult family that are not interested in the sibling.

Any thoughts you have would be EXTREMELY appreciated.

ANSWER: Kim,

I can only tell you how it works in California.  When a person is declared incapable of caring for their own interests and the family does not step in the state appoints a professional fiduciary to take care of all their needs including financial.  If it is decided to sell the house the court has to give permission and an appraiser then appraises the property for fair market value.  You need to find out how in works in Illinois and then find out who is now overseeing the woman's affairs.  You can then contact that person.

Hope this helps.

Sue Bernstein

---------- FOLLOW-UP ----------

QUESTION: In such situations, are the sellers usually trying to sell pretty quick, particularly in this bad housing market?

Answer
Again, I can only tell you how it is in California.  The state's primary concern is the best interest of the woman.  Money is needed for her care and it is the state's responsibility to get as much money as possible. They are not looking to dump it at bargain basement prices as that is not in the best interest of the woman.