Re: Closes Friday - financing fell through - Posted by GL - ON
Posted by GL - ON on July 15, 2003 at 09:17:14:
If you are going to resell it why do you want it in your name? Use a Contract for Deed, or Agreement of Sale, Long Form as we call them in Canada.
Tie the place up for a year or 2, and resell it within that time. You will save a lot of money in closing costs, and a lot of hassles.
If you really want to do it the hard way and buy it outright,ask the seller to take back a second mortgage for $11,000.
After all, he is getting $56,000 cash between the first mortgage and your down payment.
If he is committed to the deal then he should have no problem with this.
By the way you might be better off to put the mortgage on your house or your partner’s house. The bank tends to get icky if they find out you are using a second to buy the property but if it is on another property it’s OK.
You can move the mortgage later if you want.
If this won’t work don’t sweat it. If you have to put up a lot of cash, the deal wasn’t that hot anyway.