We tried to negotiate a short sale. However, about 5 years ago she foreclosed on a home herself (long story, her daughter, my sister-in-law stole money from her and ended up in prison for 5 years for that and other crimes involving drugs and money, but the damage was done and m-in-law couldn't recover financially). She has been renting the house from us since we got married because she was living with my husband before we married and we each owned a home. With the market being what it was even 3 years ago, it was worth less than he owed. Now it's even worse, hence the decision we have made to do Ch. 7 and let BOTH homes go.
Anyway, mother-in-law has done nothing to rebuild her credit since the FC and just got a checking acct in the last year. Until then, she had been doing cash under the mattress financing. :eye roll: So, she was denied for the loan. I would like to try and get her credit rebuilt with a prepaid CC or a signature loan through the bank she has her checking with now if they'll give her one. But, this might take too much time and the house might go into FC. So, is there any law against her buying it at auction? Or will the bank bid it up to the loan amt, making it impossible for her to finance because of loan to value being way off? House is worth around $72K and current mortgage owed is $114K.
She would be living in the house only, we would not live with her (it's way too small for 3 adults, 2 toddlers, 3 cats and 3 large dogs, LOL. I'm thinking there must be some law against a relative buying a property, though, because it looks sketchy. She just doesn't want to move and we'd love for her to be able to stay somehow and HOPEFULLY build some equity in the home if the market improves. She's nearing retirement, but what she would pay in a mortgage at $72K is what she'd pay for a 1BR apartment, possibly even less.
Anyway, mother-in-law has done nothing to rebuild her credit since the FC and just got a checking acct in the last year. Until then, she had been doing cash under the mattress financing. :eye roll: So, she was denied for the loan. I would like to try and get her credit rebuilt with a prepaid CC or a signature loan through the bank she has her checking with now if they'll give her one. But, this might take too much time and the house might go into FC. So, is there any law against her buying it at auction? Or will the bank bid it up to the loan amt, making it impossible for her to finance because of loan to value being way off? House is worth around $72K and current mortgage owed is $114K.
She would be living in the house only, we would not live with her (it's way too small for 3 adults, 2 toddlers, 3 cats and 3 large dogs, LOL. I'm thinking there must be some law against a relative buying a property, though, because it looks sketchy. She just doesn't want to move and we'd love for her to be able to stay somehow and HOPEFULLY build some equity in the home if the market improves. She's nearing retirement, but what she would pay in a mortgage at $72K is what she'd pay for a 1BR apartment, possibly even less.
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