Expert: Lisa Webber - 8/30/2009

Question
I know of a property built in the late 50's or early 60's, that has a lien of ~$158,00.00, for I believe about/over 15+ years. However the house will most likely not appraise to that much. No work has been done on it in as long also. Need windows, plumbing at minimum. Also at this time the property, could not even get a U.& O.(use & occupancy)due to no water(burst pipes) and no water in the house. If I make an offer to the lien holder of the home, for a less amount ~30-40
Do you feel they would accept my offer? Also would I have trouble with getting a Bank Mortgage, with a good size down payment? Please advise. Thanks Tim

Answer
You would have to ask as far as what the lienholder would take.  It's anyone's guess as to what a seller will accept for a property.  Has this property been vacant all this time?  You want to make sure not to overpay just because there is more owed on it by the owner of the property.  As far as loans go, you would need to either qualify for a conventional loan or do some sort of construction loan where you have the bank finance the repairs to make the home livable. It sounds like this is going to be an enormous project and I would recommend bringing professionals in to advise you.  At a minimum you'll want a good home inspector who can not only let you know what all needs to be done to the house but who can also break down the costs.  A licensed 203k home inspector would be a good person to hire.  For a couple hundred dollars, they can give you an idea as far as if it would be worth moving forward.  You'll also want to make sure that once you purchase the home and do all of the repairs and upgrades that are needed, that the home will appraise for at least what you have into it, preferably more.  Some homes can end up being money pits, so make sure to do your homework.

I hope this helps - let me know if you have any other questions that I might be able to help with any other information.  Good luck!