Re: Newibe DEAL? - Posted by Jim IL
Posted by Jim IL on January 31, 2000 at 19:35:58:
As said in the other response, the seller may not really need to get the home loan out of his name.
Talk to him some more, and test the motivation level.
If he is being transferred quickly, then you can offer him several ways to get out of the home QUICK and still be able to get his loan for the new home.
Most lenders will give the seller credit for 75% of the lease amount.
So, if you rent a home for $1000/month, he gets credit for $750/month.
This may be enough to get him his new loan.
See who he has talked to and gotten this information.
If he says, “no one” or “so and so”, get him to a good mortgage broker, amybe even one you know.
They can show him what needs to be done, and what he gets credit for.
I recently had a lender tell me that IF a seller has his old home sold on a Land Contract, then the new loan is not affected as much, since the old home is sold.
I have yet to talk to him about this in detail, but it seems to work better than the 75% credit on a lease.
(unless thats what he meant).
OR, if his current payments are low enough, then do a L/O and make your paytments high enough so that the 75% credit matches his payments.
If there is still room for a profit for you that is.
Bottom line is, it can be done, your job is to get the seller past his objections, and show him how.
After you talk to the seller more, come back here and post, I’m sure you’ll get better answers with more details.