Posted by JoeS on August 13, 2003 at 06:01:27:
If all you are saying is true…where is the profit margin? Total loans: 550K; value: 550K!!! See what I mean? Unless there is missing information this deal is no deal at all in my opinion.
Assume loan… need help - Posted by Pattie
Posted by Pattie on August 13, 2003 at 02:19:39:
Hi
I am a newbie and looking to put together a deal where
the seller has a hundred %mortgagage on a house worth $550,000. The 1st loan is $440,000 and a 2nd of $110,000
She wants to quit claim deed to me, while keeping the loans
in her name pending refinancing. However there is a 2 year hard pre-payment penalty on the 1st, so I cannot refinance
without loosing money. How can I structure this deal and
still make money. I would like to rehab the house but I do
not know how to go about it. PL’S HELP SOMEONE.
Re: Assume loan… need help - Posted by Chireen
Posted by Chireen on August 22, 2003 at 04:06:57:
You’ll have to read the terms of her pre-payment penalty. To you, it is a refinance, but when you refinance, to her current lender it is a sale (from her to you) even though the sale actually occurred previous to that time. If the pre-payment penalty exists only on a refinance and not on a sale, then her current lender cannot charge the pre-payment penalty (unless SHE is the one refinancing). I don’t deal much with pre-payment penalties, but I think many of them have a clause in it that allows for the Borrower to sell the house without incurring the penalty?? Again, you’ll have to read the terms of her note.
Hope that helps.
Thanks,
Chireen