Posted by SCook85 on June 06, 1999 at 18:50:18:
First Lien $36,000
Second Lien 30,000
Total Liens 66,000
Sell with L/O for $69,000 with $4000 down, they now owe you $65,000 less rent credits. You are upside down because you owe more for the house then what they owe you.
You will at this time have $4000 option consideration and what is left after all costs of the $6000 that you are supposed to get.
This is a creative no money down deal that I see as being only a rental. You won’t have a back end spread with the numbers you are talking, and your front end will be minimal.
I would ask the hard money lender if they would make your loan assumable, or since it is an equity loan I would see if anyone could get it. Then I would look to assign the contract to someone else and make an assignment fee plus maybe a small 3rd mortgage. I think this would work out best for you.
You want to limit your risk and the way that you are proposing you are taking all the risk you could possibly take with the exception of putting your own cash up.
I think you should be able to put a deal together you just may have to do it differently.