Friday, November 27, 2015

What is the process for selling a house as-is, exactly?


A 2 bedroom, 1 bath brick house is in my mother's name. She's a widow. The house has a refinance from 2003 or 2004 through Chase home mortgage. She did that to pay off the mounting credit card debt that had been acquired over the years after losing her husband, who left nothing to his name and a whole lot of bills. She seems to have realized that refinancing was a big mistake (the house was nearly paid for in 2003/2004), but can't take that back now.

She has been paying it down, but there is still something like $45,000 left on the refinance. I have tried to help as much as I can, fixed stuff around the house, etc. Honestly… Its an old house. Built in 1950. Old wiring, old pipes, fiberboard on the attic floor is breaking up all over the place and a bit dangerous, insulation has pretty much all fallen off from the inside of the attic and/or is non-existent. The previous people that my parents bought the house from in 1979 did a lot of work themselves, and it was typically shoddy. I wasn't even born yet, and the inspector must have been a complete idiot to have missed the stuff that he did.

Dirt crawlspace basement with a bricked-off area that is about 15 feet long x 3.5 feet wide and about the same high. The former owners dug that out because the FHA back then told them that the water heater (it was in the kitchen and vented through the roof) couldn't be in the kitchen due to code violations.
Added (1). They dug out an area in the basement, cinderblocked it off with a retaining wall and put the hot water heater at one end and an illegal sump at the other. Literally just dug a dirt hole. No yard drain or anything was installed. It is a freaking mess, honestly. If it rains for 2-3 days, water comes from the various points in the bricks and drains to the sump area. None of that was installed properly.

I want to see her get away from this house and sell it as-is.
Added (2). I'm planning to ask her to get a payoff amount from the mortgage company, as the $45K owed factors in a ton of interest over probably the next 20 years or so since she has only had the loan for around 10 years.

What is the process for selling a house as-is to someone with the ability to hire the know-how to fix all of this stuff, bring it up to code, etc., and re-sell? Also, what are the odds of finding someone who will pay enough to sell the house?
Added (3). I should also note that she filed Chapter 7 last year due to overwhelming debt. She's not really in a position to get some fancy job that will pay a lot of money and struggles with certain personal things. In essence, she's barely making it.

I am her only remaining son that has stuck around to help her. I'm single and pretty much not taking on any big obligations in the near future. I want to move to a better area, too. The neighborhood went downhill. We want to sell and rent a house elsewhere.

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