Posted by WilliamGA on February 14, 2001 at 24:02:16:
Jim,
You are going to give this guy what amounts to full price for his house for the right to take over a 12.25% mortgage?
There are lots better deals out there than this.
I would keep looking.
Is this Do-Able - Posted by Jim
Posted by Jim on February 13, 2001 at 23:48:58:
Seller calls on my ad and says he has a house to sell.
Mortgage is current, but seller wants to move elsewhere because he is a former NFL player and wants to go back doing that. (Whatever)…
Mortgage Balance is $199,500.00 and they have equity in the place. Recent appraisal came in at $240,000.00. They are asking $230,000.00
The current mortgage is at 12.25%! thus creating a high monthly payment!
I presented a “Subject To” offer to them as well as a lease option. They really like the subject to deal best. I told them I can take the house and make their monthlys and give them back a 2nd for their equity of $20K after handing them $5K at closing for their immediate needs. The 2nd will be “NO INTEREST” due to the high 1st mortgage interest rate.
The house is only 6 months old and in excellent condition on an acre and a quarter lot in a favorable area. I should be able to get $25K down from a buyer if I’m providing owner financing no bank qualifying.
What do you guys think of this one?
Good or Bad?
Thanks
Jim
Do-Able? Yes. Advisable? No. - Posted by JoeKaiser
Posted by JoeKaiser on February 14, 2001 at 24:56:16:
Buying High and selling Higher is rarely a good way to make money.
Even worse?
Buying high and selling for the same price!
The notion that someone has $25k to put down for the right to make payments on a 12+% loan is highly unlikely.
Remember, the top 20% doesn’t count so don’t pay for it. If they were walking away and I had a buyer ready to step into their shoes, I’d consider signing it up. Otherwise, go find a deal that makes sense.
Joe
why the high rate? - Posted by AWWMi.
Posted by AWWMi. on February 14, 2001 at 24:16:23:
I’m wondering why the rate is so high on a recent mortgage? Would it be possible to get them to refinance in 6-12 months when the initial loan has been seasoned? .02