Posted by Larry In CA on April 01, 2002 at 14:49:35:
Thanks for the response Mike I may pass on this one because the first is a 10.9% HFC and I can’t come out of pocket to buy the place. Besides, turns out the sellers husband (not on the deed), thinks my offer is way to low.
Larry In CA
Note Buyer Question - Posted by Larry in CA
Posted by Larry in CA on March 31, 2002 at 17:14:55:
I am talking with some people on making a deal on a TH with a $140,000 1st and a value of $230,000. I need to create a 2nd and sell it in order to pay off a $6000 2nd and $4000 in HOA arears, and $15,000 cash to seller. How big of a 2nd would I have to create to get the $25000 at say 12% interest only with 5 year baloon???
Larry In CA
2nd liens are Tough - Posted by Michael Morrongiello
Posted by Michael Morrongiello on April 01, 2002 at 12:58:21:
Larry:
There are VERY few “takers” for newly created 2nd lien priority Trust deed “paper” especially where you would be buying this townhome for investment purposes…
Why not consider purchasing the property and having the seller take back ONE 1st lien Trust Deed & Note that can then be readily sold to generate the cash needed to retire the existing 1st lien & 2nd liens, pay off the Homeowners association, and get the property seller some cash as well?
The down payment to be put down, occupancy, use, credit profile, credit scores, and repayment terms of the Seller financed Note & Trust Deed will all have to be looked at to formulate a realistic “pay price” for such a seller financed 1st lien Trust Deed & Note.
Warmly,
Michael Morrongiello