Posted by Rafael on December 21, 1999 at 24:51:01:
I have a home that I am currently refinancing. 80% allows me to pull 7k out at close. I have found a home that I want to purchase nearby. Tax assessed value is 87k. The house has been foreclosed. 1st is a private mtg held by a trust in California. 2nd is held by Ford Motor Credit (Associates). House got pretty trashed. Will need about 10-15k in work, maybe less if I am able to do more of the work myself. I offered 70k to the local attorney here in Florida. Within 2 days the owner in CA had called, and said the house would be listed, but we would be the exceptions. Will sell as is, but is having someone check to make sure no leaks in the pool, etc. The question is, what kind of financing can I get. Similar homes in the neighborhood go for 105-120k. Tax asessed is 87k. I would need about 80k to do this. Local banker says I would need 20% of the 70k down, as PMI may not do the loan with my BK showing. Suggested possibly a mortgage broker might be able to help. She will try, but no promises. My credit is getting better after BK in 10/94. Beacon is still in the low 610-625 range. Have all current loans with no late pays. Good Debt to Income. Any suggestions? Any help would be greatly appreciated.
I’m confused…If the home has been foreclosed then it has been reposessed. The 2nd lien lender would have been wiped out in the courthouse auction unless they put up funds to protect themselves?
One idea is to Have the seller agree to sell to you and take back a purchase money 1st lien mortgage and note. IF you can put down 10% cash down and the note can be properly structured, it can be converted into CASH proceeds that would be used to pay off the other lienholders.
Posted by Rafael on December 21, 1999 at 22:17:42:
I am still working on all of the details, but as I understand it, the family living in the house had not made a payment in over 2 years to the family whose trust was holding the note. Sob stories of how his pizzeria was doing lousy, etc.
These people had a medical malpractice settlement from their pediatrician, and went through it very rapidly. The trustees finally threw them out, and as I understand it, have caught up all payments due to The Associates.
Provided everything goes smooth with the refi on my current home, 10% is realistic for a down payment.
Any ideas on how I should proceed? Please keep in mind I am a novice here, so please explain everything in language or terms I will understand. Thanks for you help.