Tonya,
You confused me when you emailed me, and I’m more confused now. Where’s the deal. I don’t see a deal here. You are going to have a very tough time pulling this one off.
You are borrowing $39,000, and need another $9000, looks to me like you will be into this one for $48,000 and the home is only worth $49,000. You are already calling this one “no money down” you have quite a ways to go before this is no money down.
You need to rethink your numbers and probably walk from this one.
Do you know what a wrap around mortgage is, you are talking about doing one and it seems like there is no way it can fit into this transaction unless you disregard everythng else you mentioned and have the owner finance the deal.
I’m not trying to come down on you but it seems to me like you need to slow down before you get yourself to deep into something that you can’t get out of. I think you need to educate yourself a little more before proceeding with a deal.
I just bought my husband a two bedroom 1 bath with no money down - Posted by Tonya Brown
Posted by Tonya Brown on May 19, 1999 at 18:13:03:
I just bought a no money down 2bdrm 1 bath
house that only needs cosmetic work. It has a
huge kitchen and large bathroom with walk in
closets the mktv is $49,000 and the seller is
letting it go for 43,000. I offered a $500 non-interest bearing note and $3,500 for the
realtor’s fee at closing for a total of $4,000 and the seller will pay closing costs, all
appraisals, inspections, and-- if any-- loan
points. I have a private mortgator who will loan me the $39,000. The mortgage is $35,000 and I am trying to pull cash at closing or do a wrap around mortgage or create a mortgage and sell it to finance the deal and provide the cash for the $4,000 and $5,000 fix up money. I need a total of $9,000 at closing. Any ideas?
Paying $9k out of pocket to close is hardly a NMD deal. A $49k house needing $5k in fix-up isn’tworth $43k cash. You’ve overpaid a great deal. It’s probably worth $34k AT MOST,(more likely about $30k) and even then, it’s a thin deal where you might net $6-7k if you’re lucky.
With $39k private money available, you ought to be able to pick up something in the $65-70k fmv range. If I were you, I’d keep looking for a better deal and pass on this one.
I was going to post pretty much the same as Steve, so I say ditto. I think you need to walk away from this one. Tonya, you do not have a no money down deal until you have the deal set up where no money or very little money is coming out of your pocket and if you do put up any money it is recouped with your buyer. I think you need to re-think this one.