You hinted at it, but it remains unclear to me. What is the market value of the home?
Whatever may occur - one thing is clear. You are already a winner having lived there 9 months rent free.
The housing is just outside the former Grissom Air Force Base in central Indiana. The housing is, well, an interesting story. Back when the housing was built, someone got the plans mixed up. A base in Florida got the housing Grissom was supposed to get, and visa versa, we got theirs. They got the better housing, Grissom got the worst.
The housing section where I live, as built, is not worth much over $12,000 - $15,000. The plumbing is substandard, the wiring is over 50 years old, and there is very little insulation built into the structure. However, when the housing was opened up, the local realty association demanded that any houses that were sold were not be sold for less than $30,000 so their market wouldn't suffer.
Well, folks in Miami county all see how that worked out. Now ALL THE HOUSING in Miami county is undervalued. I laugh in spiteful ridicule because when the realty association pushed through their request I stood up to them and told them they were wrong to their face and they were inviting disaster. I hate to say I told you so.....................
The market value of the home is priced between $10,000 - $12,000 tops. That's all the physical structure is worth. Honestly, I would say the house is worth no more than $7,000 - $8,000 but that's because I have access to the blueprints and I've seen how they were built and maintained. Not good.