Posted by rayrick on April 05, 1999 at 10:39:37:
…can I have that once again a little slower?
-Ray
Let’s give it another whirl. - Posted by Brandi_TX
Posted by Brandi_TX on April 04, 1999 at 21:35:37:
I realize the NewsGroup has gotten to be large, some people have mentioned they can’t keep up. So maybe a post I wrote below was overlooked, LOL, maybe I was babbling and it was skipped on purpose.
Anywho, I am really wanting a response to it’s questions. So, I have re-written it here in an effort to get a response, either positive or negative.
The post was regarding a thread on something called a “phantom second” and read as follows:
For this example let’s use a house that is worth 100k. Seller will take 88k. What if you were to write up the deal with the sales price at 100k, 80k cash, seller taking a second for 20k.Then in the seller’s second you would spell out the terms stating something to the effect of:
“Buyer agrees to pay 20k to seller with no payments and no interest until January 1st 2005 (or later if you are planning on keeping it a while). If loan is payed prior to x/x/xx(a sooner date that fits your needs and the seller wants),the seller agrees to discount the loan to 8k.”
You get the idea, legal jargon is not my thing. This would eliminate the trust factor and “what if they don’t forgive the 2nd?”. You can go get an 80/20, to pay her the 80k and as long as you pay the 2nd note before the specified date, you have only paid 88k for this property and received decent terms on the 80% loan. The lender knows of the second, no fraud. The seller gets their cash at close and knows you have a HUGE incentive to pay the 8k by the date specified, or risk having to pay full price for the house. (Hence, they have security, because if you don’t pay by the agreed date for a discount, they can get you for the whole amount and/or forclose.)
Would this be feasable? If so, would it curb the capital gains issue?
All feed back welcome.
Brandi_TX
Re: Refi at closing - Posted by rudy
Posted by rudy on April 05, 1999 at 09:09:39:
buy a house on contract for cash subject to refi at 80% or less of refi lenders appraised value.Close the sale and the refi at the same time or close on the contract and close on the refi the next day…rudy-austex
Re: nothing down - Posted by rudy
Posted by rudy on April 05, 1999 at 09:05:19:
Get the seller to sell on a contract for 80% or less of appraisal that you get from a lender that refi’s. Closing to be when you are approved for the refi…rudy-austex