Posted by Bob Johnson on December 26, 2000 at 20:27:57:
Sorry, didn’t mean to leave out details. The property is in Maryland and was in agricultural reserve as part of a small farm (about 140 acres). They bought it out of reserve, but can’t transfer ownership for 2 years. The woman is a friend of the family, or I would have given up LONG ago. I’m just too much of a REI newbie to figure this out. I really appreciate the help.
I have two main problems. The equity in my residence is too small - only about $25k. I’d need to find a lender that would go 115% LTV in a second position. Also, I’m afraid having the woman die before I can gain title to the property, leaving me stuck with the payments and having title pass to “the son”, who will sell it for cash as soon as the 2 years are up. That would mean skip tracing, court, and he’d probably spend the money before I’d ever see it.
The current $20k lien is in default and the holder is demanding payment in full. He’s a developer who stands to gain 2 acres at about 15% of their value. It sounds like this may just be too hard. If the lady gets a hard money mortgage and can’t make the payments, she just loses the property in a year instead of a couple of months from now.
I’d rather not post personal details like my credit worthiness, etc. in the forum, but would be willing to discuss via email.