Posted by Rafiq on March 14, 2002 at 08:11:50:
There are a couple of variables missing but lets give it a shot.
The owner has given you the balance left (90,000). He is looking for 20% down and is asking 159,500.
Not knowing what your credit looks like this is what I would do.
Find out what the tax value is.
Talk with an appraisor to confirm true value.
If value is there, say 200,000, then do this;
20% of 159,500 is 31,900 so if this is what the seller wants give him 31,900.
Make an all cash offer of 127,600 because you know the balance.
Offer to pay all closing costs because there is 5,700 left over. 127,600 - 31,900 = 95,700 (pay off 90,000).
0 down because it’s an all cash offer.
Close in 15 days with private funds if possible.
After close refinance at 200,000.
30yrs. @ 8% = 1,467.60 per mo. PCF of 365.73
Walk away with 72,400 and a smile.
I hope this didn’t confuse you to much.