Posted by Jim(MA) on October 23, 1998 at 16:35:43:
Jennifer is absolutly right an assesment that exceeds 10% of the appraised fair market value in my state triggers the right for owners not voting for the assessment to be able to force the association to purchase the condo for the fair market value or for the owners voting for it to pay it, depending on the percentage of favorable votes. any association that finds itself faced with assessments of this magnitude clearly has not been managed properly. i would not touch this property in any way not until they have corrected the major problem causing the assesment and that i am certain that they have made the correct adjustments to their management to prevent further assesments.
My husband and I have located a beautiful 3br3bath townhome, appraised about 58,500. We want desparately to acquire this property. However, we are unable to acquire a conventional loan (poor credit). Could you give help by providing us with creative financing possibilities:options. By the way, my husband happends to be a sub-contractor and is able to do almost all phases of home remodeling; elec., plumb., dry wall, carpet, painting., etc.
An additional note; the present homeowners have been recently assessed to pay an additional 7,000 for repairs by 10/31. We speculate that many of the owners will not be able to come up with this money and may forclose. Give us as many possible scenarios as possible. Thanks!
Re: Need Help On Securing A Loan - Posted by Jennifer(NH)
Posted by Jennifer(NH) on October 22, 1998 at 12:34:16:
Was the recent assessement by the condo association? If it were that only indicates to me that the condo association is run very poorly. This will reflect in the future value of the townhome and possibly could make reselling it very difficult. I would watch out here.
I have a program that I believe you will be interested in. In essence the program can work for you because it has no debt-to-income ratios, no minimum income requirements (works great with self-employed people), and there are no down payment source/seasoning restrictions. The only exception to this is that the money can’t come from the seller. I should say this up front that the townhome must be owner occupied. You must live in it. This restriction does not apply if it is a single family home or if you are buying a 2-4 unit multifamily home. What we do is create a first mortgage on the property at a certain percentage of the total price. This 1st mortgage is sold at the closing table to us. This allows enough cash on the table to pay off any underlying mortgages and puts cash into the sellers pocket. Then there is also a second mortgage created for the difference of the 1st plus your down payment, and the sales price. This second mortgage has terms that are totally up to you and the seller. It does not affect the 1st mortgage at all. We do not purchase the second mortgage. So the seller gets the cash that he/she needs and also gets a cash flow that pays him for years in the future. You get into the home that you want/need and with little or no down, and possibly with poor credit. The program is almost entirely FICO score driven and will make deals as low as a credit score of 500.
Re: Need Help On Securing A Loan - Posted by Mark (SDCA)
Posted by Mark (SDCA) on October 22, 1998 at 10:46:49:
Wait till the foreclosures start to happen. It will REALLY dampen any appreciation when lenders start selling. Wait for a few to set the new market price then buy from the bank.