Monday, July 14, 2008

Estates & Foreclosures

Just recently, I was very close to buying a mobile home in an estate. So, what was the problem? Too many people involved. I remember an old saying, "The more people involved in a transaction, the longer it takes." This phrase rings so true.

In this situation, there were 3 sisters involved each of them living in a different state. The sister I was dealing with in my area had showed me the home. We walked through it together. It had been vacant. But, I noticed she was more concerned about telling me about her personal life - her divorce, financial situation, etc. This raised a red flag and reminded me of people that I've worked with who have financial problems and most likely are in foreclosure.

Personally, I have not had much success working with people who are in foreclosure. It's very difficult to work with people who are so emotional and most times can be financially irresponsible. It has never worked out for me.

So, I had to negotiate a deal with all 3 sisters for the home. Mainly, I was talking to the sister in my area and another sister in another state. Turns out, the sister in the other state was very financially responsible since she was covering the majority of the costs for the home. Let's not forget - a vacant home is a problem home.

In any case, I was about to buy the home and get the deal closed. The sister in the other state was ready to get this done since she had put so much money into it. Low and behold, the sister in my area calls me up and tells me she has just moved into the home because she had been asked to leave her current rental place. She tells me she's going through some hard times and this will be easier for her financially.

Most times, the only reason someone is asked to leave where they are currently renting is because they cannot pay the rent. This could be the case in this situation. So, I call the sister in the other state and leave her a message regarding the change in the situation. (I did not think the sister out of state was aware). Then, I call the park manager of the park to let her know of the sister who had already moved into the park. She will need to go through an application approval process just like everyone else in the park. It will be up to management whether or not to approve the application. If the application is not approved, she cannot live in the park.

What is the outcome of the situation? Only time will tell. I suspect this may land back onto my plate in a couple months. With lot rent, taxes, insurance, energy and other costs associated with the home, this may be more than what the sister in the area can handle with her current financial situation.

It's turned out to be quite a messy situation. It may get even worse. This may be a good thing in disguise.

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