Newbie needs help - Posted by osirus

Posted by Rich on March 26, 2000 at 07:11:56:


Newbie needs help - Posted by osirus

Posted by osirus on March 25, 2000 at 09:18:59:

Here is the deal. As mentioned in recent previous post, I have the opportunity to buy a gorgeous 3bed/2bath house with an asking price of $119,000k. I have thoroughly verified that ARV is $126,000. The home has been on the market for six months the listing agent commented that the sellers will rent or are willing to do a lease purchase if it does not sale with two weeks. These “clues” indicate that the sellers biggest concern is dept relief since the home is know vacate and they live in another city. The home was sold to these sellers on a wraparound in February 0f 1992 with the underlying first mortage being dated in May of 1975.

The curious thing is that the online tax rolls indicate that the sellers paid $94000 for the home in '92 which is more inline with what the ARV should have been back then. However, the actual “Wraparound Mortgage Addendum” executed in '92 says “THIS IS A PURCHASE MONEY SECOND MORTGAGE in the principal amount of $65000…”. What gives? What was the purchase price $65000 or $94000? This is important because if the purchase price is $65000; then I have more creative options.

Anyway, my buyer’s agent faxed my a standard realtors’s contract to purchase this house yesterday morning. I would like to buy using a land contract/contract for deed and sale by L/O. I think the sellers will go for this since they have previously indicated they are willing to accept payments.

But how do I put this together? What is the next step? How do I fill out the realtors contract to indicate it is going to be a contract for title; assuming that the sellers agree to contract for title?

I want to get in this deal with no out of pocket money and simply take over the sellers’s payments. But, how do I handle the listing agent, my buyers agent and closing cost? I know that both agents will want their commissions up front and I am afraid that they may be uncooperative if they are not paid their commissions up front. Also, will the sellers have to bring cash to the table to pay their share of closing cost? If push comes to shove, I can come up with about $6000 upfront.

I feel a bit apprehensive about finding a tenant buyer in less than 90 days. How will convince the sellers to giveb me another 3 months to find a tenant buyer after their house has been on the market for the past 6 months? One solution, I can think of is that I can escrow three separate payments equal to three of their payments of their underlying mortage. That way ,if could not perform, then at least the sellers had thier mortgage paid for three months by me.