Buying or Selling a Home/Buying my Mothers home?

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Question
My mother is about to lose her home, due to some financial problems she had after my step father moved out. How would I do it if I want to buy her home. The only thing is, we don't have the Down payment or the credit for to buy it on our own. We want to pay off what she hasn't paid yet. The purchase price was $125,000.00 and so far she has paid a little over $30,000.00 in the past 2 years. The mortgage is about $1300.00 for 15 Years I believe. We have the income, just nothing else. How can we do it?

Answer
Hello Jasmine - To begin, you can anticipate that during the first 15 years a majority of the payment goes to interest not principal. You will need to have her contact her lender to ask for a payoff amount to be certain of the amount.

Next, the next reasonable step would be to find out the past due amount to bring the loan current. You can get creative in this approach as the bank usually doesn't care where the money comes from i.e. Gift, personal loan, life insurance face value, hard money loan against a car title, etc, or even another family member could do a refinance of their home and take the proceeds and apply it to the past due balance. Or possibly even consider multiple family members combining funds. However, beware of scams, people offering money to 'save' you from disaster in return for being added to the deed/title... never allow someone to be added to the property deed/title, unless its a 'trusted' family member. Some scams offer to buy the home to get it out of or prevent foreclosure, and allow your mother to rent it back till she is able to refinance it.... these are usually scams. You could also seek a lender to see if you, along with your mother, could qualify to refinance the home.

Maybe she could reach out to her church organization, or other possible programs and assistance for good people in tough times. The point is that she needs to bridge herself between her current issue and a point in time when she is free of the current burden.. sometimes this is days, weeks, or months... getting help using these organizations is sometimes the best answer.

Have her discuss her financial situation with the lender and ask what options the lender offers. In some circumstances, they will take the amount due and add it to the end of the loan, this brings it current but usually adds to the payment amount... other times you can inquire as to what programs the lender offers for someone in these situations. Each lender is different, as is each borrower's situation (hardship), if you don't ask you won't know all the options.

I would talk to a real estate attorney about her options legally. Learn what the lender's rights are, and what your mother's rights are, in the state in which the property is located. This way she will understand what the lender can and can't do, this makes her more knowledgeable and will help her reduce her stress level and understand the process to work with it instead of against it.

I am not a real estate attorney, so this is not intended to be considered legal advice, rather it is real estate information that any professional REALTOR should be able to provide. Please let me know if you have any additional questions. - Todd

Buying or Selling a Home

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Todd C. Menard, GRI, rCRMS, REALTOR, BROKER

Expertise

National Association of Realtors Code of Ethics and Professional Standards * Contract Questions: Arizona Real Estate Purchase Contract, Exclusive Buyer Broker Contracts, Listing Contracts and associated contract documentation (addenda) as it relates to boilerplate, covenants, contingencies, procedures and procedures. * ARMLS Arizona Regional Multiple Listing questions * Real Estate Professional Standards and Practices, Ethics, Obligations, Duties * Agency relationships in Arizona, Procurring Cause * Questions typicaly arising during the listing period * Questions typically arising during the escrow period * Questions about working with a real estate agent/REALTOR * Questions Related to New Home Builders

Experience

National Association of REALTORS Board of Director (2011, 2012) Arizona Real Estate Salesperson License (1991-1995), Arizona Real Estate Brokers License (1995-Present), Arizona Association of REALTORS Board of Directors (2008-2013), Arizona Association of REALTORS Professional Standards Committee (2008-2012), AAR Certified NAR Code of Ethics and Professional Standards Instructor, Southeast Valley Regional Association of REALTORS President (2012) Southeast Valley Regional Association of REALTORS Board of Directors (2008-2013), Southeast Valley Regional Association of REALTORS Grievance Committee Chairperson (1998-2007), Southeast Valley Regional Association of REALTORS Bylaws Committee (2008-2010), Southeast Valley Regional Association of REALTORS Education Committee (2007-09), Arizona Association of REALTORS Forms Committee - Residential Purchase Contract (2005), Arizona Association of REALTORS Forms Committee - Residential Rental Agreement (2008), Arizona Association of REALTORS Forms Committee - Buyer Broker Agreement (2009), Arizona Association of REALTORS Presidents Advisory Group, Road to Professionalism (2009), Arizona Association of REALTORS GRI Curriculum Review Committee (2009), Arizona Department of Real Estate, Commissioner's Education Advisory Group Sub-Panel B (2010) Arizona Department of Real Estate, Commissioner's Statute and License Review Committee (2007)

Organizations
National Association of REALTORS, Arizona Association of REALTORS, Arizona Real Estate Educators Association (AZREEA), Arizona Regional Multiple Listing System (ARMLS), American Notary Association, Southeast Valley Regional Association of REALTORS (SEVRAR), Southeast Valley Regional Association of REALTORS Women's Council of REALTORS (2010-Present), Phoenix Association of REALTORS (1994-2000, 2005-2009), Scottsdale Association of REALTORS (1994-2000, 2005-2009), Maricopa/Glendale Association of REALTORS (1994-2000, 2005-2009),

Publications
"Real Estate in 2008"- Lifebushido Publishing (Contributory Author), Southeast Valley Regional Association of REALTORS "SEVRAR Magazine", Internet Crusade, RealTown ListServe, Blogger.com, Active Rain

Education/Credentials
- Certified NAR Code of Ethics and Professional Standards Instructor, Graduate REALTOR Institute (1993), Certified Negotiation Expert (CNE), Over 100 Hours of annual real estate continuing education, Annual Ethics and Professional Standards Development Workshops as required by the National Association of REALTORS, Approx. 36 hours of NAR Code of Ethics training annually, Numerous IDW, Seminars and Train the Trainer programs, Business Management Degree - 1981

Awards and Honors
2009 REALTOR of the Year Award, Southeast Valley Regional Association of REALTORS (10,000+ Members), Double Platinum Production Award ($45,000,000 Sales Volume)- Keller Williams Realty Int'l (2001), Top 15 Sales Production Keller Williams Realty International (2001), Top 5 Sales Producation Keller Williams Realty Southwest Region (2001), Top Recruiter Award - Keller Williams Realty Int'l, SW Region (2002), Who's Who in U.S. Executive (1983), Who's Who in U.S. Real Estate Professionals (2007)

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