Posted by jafon2k on August 11, 2003 at 05:39:16:
Don’t let them touch the house without closing. That’s for sure. These guys seem like they are investors, maybe even beginning investors.
Accepting or not accepting the check is a personal decision. But it is not unheard of. Maybe have them verify source of funds to cover the check.
By the way how are they going to pay closing costs?
can somebody answer this question - Posted by kello
Posted by kello on August 08, 2003 at 14:17:22:
We are selling our house by owner. The people buying it got a signature loan for 150,000 the sales price is 155,000. They signed the contract for that price with a closing date of Aug 15th. After they signed it they now assume we will hold a check for a few weeks for the remainder of the balance. We don’t want to at this point because we don’t feel like there would be any way to collect it if they decide later not to pay it. We will be leaving the state and wouldn’t have the money to fly back to fight this in court. Any suggestions?
Re: can somebody answer this question - Posted by jafon2k
Posted by jafon2k on August 10, 2003 at 09:16:13:
May I ask what bank did they get a signature loan in that amount from?
Also, hold a second mortgage with deed in lieu of foreclosure. Accept the post dated check(s) to pay off your note in the alotted time. I have seen such terms (post dated checks)on mortgages from private lenders. A bounced check would be cause to exercise your foreclosure rights.
The hold pattern looking for a next buyer may cost you more than the $5000. For example, 1 month lost rent or additional payment can amount to $1000. Multiple this over the likely number of months to find a new buyer, finance her, and close. Delays in your personal plans, etc.
Re: can somebody answer this question - Posted by Mike (NY)
Posted by Mike (NY) on August 08, 2003 at 14:52:42:
Hello,
Here are a couple of options you may want to look into.
You could place a 2nd note on the property at a low interest rate with a balloon due at 12 months for the remaining sum of the loan.
If your buyer defaults you have a cloud on the title.
Another option would be to create a note for say $10,000 and then sell it to a private investor to get your $5,000.
And your third option would be to find a new buyer that cna complete the deal in a way you are more comfortable with.
Best wishes,
Michael Pine
email: michael_pine@yahoo.com
AIM: MortgageBroker71
Re: can somebody answer this question - Posted by kello
Posted by kello on August 10, 2003 at 15:57:10:
They have to pay off the signature loan in 45 days. They want to come in and start remodeling the house before we even leave, so they can refinance it for more money at the end of Sept. I have told them no to the check. They seem to me to be imposing enough already. I just want my house sold for what we agreed upon! Not all this other business. I’m apalled at them for just assuming we would go along with all these changes “AFTER” the contract was signed.