Posted by Ben on February 24, 2002 at 08:50:20:
I haven’t been able to find the site. Can you direct me to it?
Thanks
Posted by Ben on February 24, 2002 at 08:50:20:
I haven’t been able to find the site. Can you direct me to it?
Thanks
L/O with Farmers Admin Home Loan - Posted by Bernie
Posted by Bernie on February 21, 2002 at 20:38:32:
Farmer Home loan is a federal program for loans in rural america. they usualy involve some grant money to buydown interest, or provide for downpayment. A lease option on house that has this type of loan is very difficult, the terms of the grant state that the owner must live in the property and could be subject to a fine (big fine) if they lease the property. the question then is: a) does anyone know how to get past this issue? b) do they actually enforce this?
Please help – bernie
Re: L/O with Farmers Admin Home Loan - Posted by John Oh
Posted by John Oh on February 22, 2002 at 07:00:08:
When a FmHA financed home is sold they add a recapture amount to the payoff. This is the amount the govt lost by making a low interest loan.
For instance. You find a seller with the FmHA loan, and you find their 2% loan has a pay off of 40,000 on the 70,000 house, you think, hey this could be a deal. When they order the payoff, (BTW - FmHA has to see the purchase contract), they add 20,000 to the payoff in the form of a recapture (this is how much the gov lost givng the 3% loan when it should have been 9% loan.
BTW - FmHa Actucally loans the money and manges their own forcloures. I like dealing with them. Can you guess what I do when they add the recapture amount?
You can lease them also, but they could call it due. And apply the penalties, making it impossible for you to bet a deal with them.
O.K. I’ll bite… - Posted by osirus
Posted by osirus on February 22, 2002 at 10:29:44:
Was this line meant to be sarcasm :“I like dealing with them. Can you guess what I do when they add the recapture amount?” or do you actually have a plan?
If so, what do you do when they add the recapture amount?
Happy investing
Re: Drop the other shoe (nt) - Posted by John Oh
Posted by John Oh on February 24, 2002 at 08:32:23:
You can negotiate these down quite a bit. Handle it like a Short Sale.