Any Recourse? Newbie Mistake - Posted by Roy_FL
Posted by Roy_FL on June 29, 2003 at 14:52:49:
Almost a year ago, I bought a small, low-income duplex which was owner financed. Here are the particulars: Owner is a real estate broker, I bought it for 45k with 5k down- 2k at close, 1.5k in 6 mo and 1.5k at 12 mo. The balance of 40k is paid at 8.25% 30 yr amort with 5 yr balloon. The property itself is old, ugly and will only attract low-income tenants. I’m not complaining about the cashflow, but my worry is this- I bought it for 45k BEFORE I discovered this website. I’ve since realized that the value of other properties in the area are only going for around 30k. Am I screwed or do I have any recourse because this owner-broker (emphasis on broker) gouged me for over 50% on the sale price?
The positive side is that he’s not reporting the payments to any credit bureaus, and as part of the counter-offer, he wanted a quit-claim deed to hold until payoff. What would be the ramifications of deed in lieu of forclosure when the balloon comes due? Should I sue for misrepresentation because he- as a broker- took advantage of my ignorance (not stupidity) of property values?
I’m baring my soul here, but for the small investment, I’m not too worried. Just really irritated. Any advice would be greatly appreciated.