Lonnie or Ernest, please help - Posted by Rick Olson

Posted by Mr. C on August 29, 2003 at 20:12:53:

House appraised for $107,500
Listed for $98,000
Seller owes approx. $85,000
I would like to offer $90K for this and either L/O or sell on a wrap for $115-120K.

The REAL value of this property is in the land and it’s improvements, not the home (why else do you think no-one wants to loan on it?)… and it’s rather unlikely you’ll find a buyer who’ll pay MORE than appraised value… not to mention that between the realtor and closing fees, the seller will barely break even… resulting in little to nothing left for you to pocket.

Walk away… better deals await your efforts.

Lonnie or Ernest, please help - Posted by Rick Olson

Posted by Rick Olson on August 28, 2003 at 21:26:13:

I have found a realtor who has listed a 1974 doublewide on a full basement and cannot get financing for any of the buyers.

House appraised for $107500.

Listed for $98000

Seller owes approx. $85000

The house is on acreage, not in a park, and is on a concrete foundation. It is in excellent condition and shows very well.

This realtor has put it under contract with 4 buyers and every one has been denied after the underwriters saw the appraisal which showed it was a pre 1976 manufactured home.

The current lender will not write a new mortgage on it, nor allow assumption of the existing one.

I am familiar with your materials and own both of Lonnie’s books, but I can’t see how to make this deal work.

The seller has been transfered and the house is sitting vacant. ie he is motivated.

The realtor is young and is not open to the idea of creative financing yet. I am a mortgage officer with one of the few banks that will finance MHs but not this one.

I would like to offer a deal where I take the MH “subject to” the existing financing, but don’t have the cash above the note amount to pay the realtors commission. I do not have ready access to any additional funds either.

I know this seems to be impossible but that is exactly why I came here. If it can be done, you have probably done it before and can guide me on how to do this one.

Thank you in advance for your time and responses.

Sincerely,

Rick-MI

Re: Lonnie or Ernest, please help - Posted by Jeremy - KS

Posted by Jeremy - KS on August 29, 2003 at 15:16:39:

The reason lenders will not do this is the high LTV for a rural area. But try Centex Mortgage or Argent Mortgage. I am a Mortgage Broker and did one like this in Nevada, however at 85% LTV. That is the highest they will go so I am not sure how this will work. Maybe the seller can lower the price, or find a buyer with higher down payment.

Re: Lonnie or Ernest, please help - Posted by Mr. C

Posted by Mr. C on August 28, 2003 at 23:33:28:

How do you figure to make a buck on this deal? What are you bringing to the table that would warrant you being compensated in any way?

When you can answer that, you’ll have the solution to the problem.

Re: Lonnie or Ernest, please help - Posted by Rick-MI

Posted by Rick-MI on August 29, 2003 at 18:25:48:

Mr. C,

I would like to offer $90K for this and either L/O or Sell on a wrap for $115-120K. This becomes ticklish because I am a mortgage broker and want to do business with this office and in this small town, and don’t want to offend the agent by doing an end-around, but haven’t been able to get him to accept the idea of a sub2 offer.

I am asking, I guess, if anyone has any ideas how to finesse this deal to get the realtor to present it, and not have him get angry with me. I am a problem solver by nature, and believe this solution would solve the seller’s problem, but the realtor is in the way, and I can’t afford to offend him. Maybe I should just walk away from this, but I hate to give up too easily.

Thanks,

Rick-MI