Anyone have experience with small mortgages?

[TexasBushwhacker]

Here's the deal. My dad passed away in 2008. He had purchased an old duplex to rent out in 2004. He was bipolar, so he paid too much and took out a 30 year mortgage (because he was going to live to be 100, right?)

He left it to his wife. She was able to keep it leased for a few years, but it got to be too much for her to handle. She missed some payments and now it's going into foreclosure. She tried to sell it a few years ago, but couldn't find anyone who would pay her enough to pay off the loan.

She's 80 now and told them to go ahead and foreclose. I was contacted by a private investigator because, as his daughter, I still have the right to take over the loan an keep it.

The balance on the loan is under $50K, but with all the interest, late fees and legal fees, she owes $67K. It's not worth $67K. It's 42 years old, needs a new roof, flooring and a simple AC system instead of the window units it now has. It's probably worth $50 to $55K as is, maybe less.

Oh, and it's 5 blocks from the beach!

So, I would LOVE to live in one side and rent out the other, but I can't find a lender who will do such a small loan.

Has anyone here been able to secure a loan for $60K or less?

[Massacure]

2. Three things to think about

1) You can go to a mortgage broker and they will shop around for mortgages you qualify for and try to get you the best rate. Most mortgage brokers are paid a commission by the lender and do not charge you any fees on top of what the lender does.
2) Alternatively, you might want to explore other loan options such as home equity lines of credit (HELOC) or unsecured personal loans (if you have a good credit score).
3) Try negotiating a price with the bank that is doing the foreclosure. In many states foreclosure means that the house will go onto auction and the bank will open with a bid at the owed amount ($67,000 in your case). If no one else bids, the bank is stuck with a property that is has to then try to sell. If the bank knows the property is only worth $55,000, they may agree to sell it to you for that. Just don't expect that particular bank to finance your purchase if they are selling it to you free and clear though.