Buyout Details in Jersey

BabyBlue91 · #1 03-03-2005, 02:11 PM

What is the name of your state? NJ

My relative died in 1999. Her son and sole heir inherited her full estate, including nearly $25K left over after the mortgage was paid off. Instead of paying her remaining debts, he lived the high life over the next few years, racking up a $10,000+ judgment from a credit card company (before her death, both were users of the cards) and two liens by the city in unpaid municipal taxes and water (the bulk of this is a leak that went undetected for months).

Anyhow, the town finally had enough and served the heir with foreclosure papers. The process server apparently has a side business in buying foreclosed property and offered to "help out" my relative. The server has proposed a plan in which he will buy out my relative's interest in the home and pay him an unspecified amount.

The details of the buyout include:
* approximately $58,000 (includes $20k back taxes, $11k cc judgment, $3,500 utilities, $4,500 other bills, up to $750 per tenant for relocation expenses (2 tenants who are behind on the rent -- this amount is supposed to diminish the longer they stay)
* $1,600 (first month plus security)
* one year's rent in a new apartment @$800/mo (already advanced to landlord by the server)
* $1,500 for incidental items
* attorney fees (atty is supposedly representing both sides, which seems like a red flag to me

After all these years of financial woes, Relative is feeling optimistic. But being the shrewd BabyBlue91 that I am, I can't help but feel as though there may be strings attached. Is this deal legit? Will there be any tax liabilities? Thanks so much for reading!

#2 03-03-2005, 02:45 PM

....scam....

#3 03-03-2005, 02:46 PM

[url]http://forum.freeadvice.com/showthread.php?t=227349[/url]

BabyBlue91 · #4 03-03-2005, 02:53 PM

I knew something didn't seem right about this. What can I say to Relative to have him re-think the deal?

#5 03-03-2005, 03:06 PM

Quote:

Originally Posted by BabyBlue91

I knew something didn't seem right about this. What can I say to Relative to have him re-think the deal?

None of my relatives listen to me so I doubt that any of your relatives would listen to me either.

BabyBlue91 · #6 03-03-2005, 03:10 PM

Well, you can go ahead and enlighten me. What type of chaos can I expect to ensue?

#7 03-03-2005, 03:11 PM

Quote:

Originally Posted by BabyBlue91

Well, you can go ahead and enlighten me. What type of chaos can I expect to ensue?

Loss of money and real estate, plus a worse credit rating than they have now.

Then from there, it goes downhill.

BabyBlue91 · #8 03-04-2005, 12:41 PM

I will be sure to update once the train wreck takes place. Until then, take care.

BabyBlue91 · #9 03-09-2005, 02:33 PM

Well, Relative has since learned that the first year's rent and the court fees (the mother's will was probated this week) are coming out of his share of the money, which will lower his take to about $5K.

While I feel a little bad that the money won't stretch as far as he expected it to, I am still a little resentful that he's getting a second chance after a foul-up of massive proportions the first time around, and he still hasn't had to bleed or sweat to earn a penny of it.

BabyBlue91 · #10 03-10-2005, 08:34 AM

Me again. Relative has not yet established a gas/electric account at new location, and both he and Tenant/Roomate have past due accounts with the electric company. Process Server thinks they'll have to pay up.