Experts opinions needed: subject to or lease option? - Posted by DanM(OR)

Real Estate Investing
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Posted by DanM(OR) on May 27, 1999 at 12:14:32:

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Experts opinions needed: subject to or lease option? - Posted by DanM(OR)

Posted by DanM(OR) on May 27, 1999 at 10:36:49:

Dear Friends,

I have a deal in the works that I am in a bit of a quandry as to how to handle it.

Deal:

FMV= 83k
Last appraisal 97: 67k
Zoning changed from Res to C2 Commercial

Price=67k

1st offer:
I pay off a second of 12k
Seller carries a 2nd:no interest and a balloon in 5 years
I take over the house subject to the 1st of 47k
It is a VA assumable created in 97. I am not to sure about assumables. Especially VAs. I know the details of FHA loans.

or 2nd offer:
Lease option with 12k payoff of first as option consideration. Secured by a performance mortgage. 3rd part escrow to pay on 1st. A 2nd for 8k due in 5 years no interest.
Payments are credited 100% and equal to sellers payment on the first.

The seller is open for both. Right now they both seem equally secure to me. I am not sure which may be best for me.

Any input is greatly appreciated.

Thanks,

Dan Matejsek

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Disregard this post! (nt) - Posted by DanM(OR)

Posted by DanM(OR) on May 27, 1999 at 12:09:41:

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Re: Experts opinions needed: subject to or lease option? - Posted by David Alexander

Posted by David Alexander on May 27, 1999 at 11:08:18:

Dan,

Always go for the deed first, L/O second. Why, are you so adamant about paying off that second and burying 12k?

David Alexander