Posted by TomC (Md) on January 16, 2000 at 18:56:39:
Sure, it is legal for them to deed the house to you. And yes, the lender then does have the right to call the loan due. Whether or not they do is the big question.
I would not buy a house on land contract from a party that was about to declare bankruptcy. Too risky.
TomC
Need Help…Can I make a deal out of this? - Posted by JeneanNC
Posted by JeneanNC on January 14, 2000 at 08:58:39:
I was contacted by a seller of a SFH with a FMV of $120,000 to $125,000. She and her husband owe $75,000 on the home purchased seven years ago at a undesirable interest rate. The house is in good repair. Need Paint and carpet cleaned. They are two months going into three months behind on the mortgage. The mortgage is $1400 a month, however the rental rate in this area is $1000 a month for a top rental. This is slightly below a top rental, maybe $900 a month. They plan to file bankruptcy. This will be their second time. They seem motivated, however need cash to move out. They want to find a lease/option SFH to move into with the cash.
What kind of offer can I make on this? Not much time because the bank is planning to foreclose. I don’t have any cash of my own? Is this an opportunity or not? I would appreciate any help with this one. A newbie looking to make a deal… or not.
Re: Need Help…Can I make a deal out of this? - Posted by TomC (Md)
Posted by TomC (Md) on January 14, 2000 at 10:07:15:
Since the mortgage balance is 75K and they are 2-3 months behind ($3500), maybe offer them 80K with closing in 30-60 days. Give them a small deposit. Make sure your contract is assignable. Put in weasel clauses like home inspection, financing contingency, etc. Have them call the lender, tell them that the house has sold and will close in 30-60 days and that they can expect a full payoff of the loan. They will probably ask for a copy of the contract. A lender would rather wait 30 days for a full payoff rather than have to foreclose. Then market the house for $100K to a buyer that can get a mortgage. Since the house will be 20K under market (accroding to your FMV estimate), it should sell QUICK! Assign the contract and collect your cash at closing.
Good luck!
TomC
Re: Need Help…Transfer the Deed of Trust - Posted by Jenean01NC
Posted by Jenean01NC on January 16, 2000 at 16:05:11:
Is it legal to have the seller transfer the deed over to my name? Can the lender call the loan due on sale clause due if transfered?
or
What about buying on a land contract? Can anyone help me these two options?