Posted by Gary (CA) on January 22, 2002 at 17:23:24:
Thanks Ralph for writing.
The house value went from $150k to $190k. The house was purchased at $150k with a $135k loan and later refinanced at $171 when the appraised value went to $190k.
Also, in California, a deed of trust (DOT) state, the loan amount may show on the recorded DOT but not necessarily the terms of the loan.
You’re right about the upfront due diligence. I had to act fast to get it. I checked title beforehand and it was fine. Purchasing without thorough review of the loan documents, however, was a calculated gamble. In our market, the house is easy to flip at a small profit if necesssary.