Helping a friend buy a house in possible foreclosure/preforeclosure

Helping a friend buy a house in possible foreclosure/preforeclosure

I have a friend (Brenda) who is currently renting a house from somebody (Scott) who moved. Initially she was going to lease option from Scott, but yesterday they informed her that they were going to have the house forclosed on. She has been paying them $600.oo per month rent and Scott said, initially, that the rent Brenda was paying was going toward the option. Now Scott says they are behind 2 months and the bank wants to foreclose. Scott also took out a home equity loan on the house to remodel more than a year ago, which incidently was never finished, before they moved out. Scott claims that they owe the bank more than $90,000.oo but agreed to, no official contract, to $60,000.oo for the purchase in the lease option. Brenda has never bought a home and has had some medical bankruptcy about 3-5 years ago. She is not sure what she should do.
I suggested going to the bank where the loan is through and find out exactly what is owed for the house, but I don't know if she should ask for the total amount (house and home equity) or just what is owed on the house. What is she obligated to pay if she buys the house in preforeclosure? Does she also have to pay for the home equity loan? I have good credit and I would love to help her, but I am not too keen on being in business with a friend. What can I do to help her without buying the house myself?


Without a contract, Brenda

Without a contract, Brenda has nowhere to go. RE deals need to be in writing.

The bank should not even talk to her an dprobably won't. She has no standing with them.

My advice is to just move on. THis house looks like a goner.

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