Posted by DAVE(MI) on April 05, 1999 at 18:45:28:
IF THE LENDER IS FIRM ON PRICE TRY FOR A 2% INT RATE. When the lender must sell for less than what they’re into it for, that effects they’re bottom line on they’re portfolio directly,but if they finance the property at “the best they can do” at a very low int. rate, that rate can get lost in a huge portfolio. good luck! let us know what happens!
Add a twist… - Posted by Sheik
Posted by Sheik on April 05, 1999 at 11:57:24:
Just called a local (read small) lender about a property they took back.
I spoke to the REO fella and he said that the property
has an existing assumable(w/ some qual) mortgage on it.
(I am not too sure I understand how it can still have a mortgage on it…after all they did foreclosed on it)
Anyway, the terms are $500 down and 7% for 30 years…mortgage amount $128,000…payments will be $1320 (PITI)
So far so good.
But here’s the monkey wrench. This is way over priced. there is no Bsmt and it’s a 2 bedroom! (FMV is somewhere around $90K) The monthly payment ($1320) is about Fair market rent for a 3 bedroom.
The REO fella is desperate to sell it. I told him it was way over priced and that there was nothing in it for me.
He told me if i help him find a buyer he “will compensate me” (can you say agent?).
I could use some help in trying to structure something out of this…even an assignment fee.
I was thinking … get an option (or a contract w/ an out) and then market the h*ll out of it
OWNER DESPERATE
TAKE OVER MY MORTGAGE
$2500 IS ALL YOU NEED
etc., etc.
and just assign the contract to my buyer.
Any other thoughts. Thanks
~Sheik
Re: Add a twist… - Posted by Reif
Posted by Reif on April 06, 1999 at 11:07:52:
I think you need to find out exactly what is going on with the mortgage. Like you said, they forelosed (unless they foreclosed on a second). I’d try to find out exactly what the problem is before you make an offer.
Maybe there’s a better solution.
Reif