Posted by Vic on June 06, 2000 at 02:46:30:
You say no mention is made of a down payment. Does this mean that all you have is a verbal offer? If so, & this property really is worth $70K & you can get it for $45K, I’d suggest you put it in writing & quick (like right now). Most written offers usually require you to indicate how much you plan to put down, what type of financing you plan on getting, etc. This is where the down payment issue should come up. The seller could care less if you putting up 1% or 99% as a down payment. All she wants is her money.
As for the financing, one way to do it is to buy the property for $45K however you have to do it, then turn around & refinance it at 80% LTV or whatever you can get. 70K x’s 80% = 56K. That means you will have cash coming back to you when you refinance. Just factor in your closing costs & you keep what’s left.