Posted by Mike Grohowski on February 20, 2002 at 14:40:18:
I am not sure if the seller is in the position to require any capital out at this point. I am surprised he would be making demands less than a month our from losing everything along with his credit. I would verify the numbers to start off with. I would call the lender and see if they would work with you. I would verify the actual value of the home and visually inspect it as well. Title work and a survey would also be a prudent thing to do if the deal looks like it will be a go. I would make sure the loan is actually assumable and can be assumed by YOU - ie. you qualify… Make sure you do the closing at a legit closing agency - dont do any kitchen table closings. If the numbers work out, offer $85K, do your due diligence and tell him to hurry. As soon as you got a signature on the contract, if not before hand, I would contact the lender and tell them what you are going to do… These are just some highlights of the deal.
In Summary (not all inclusive though).
- Verify the value and condition of the home.
Make sure the numbers add up to a good deal and make sure you would be getting a clear title to a usable dwelling. - Get a signed contract subject to financing, survey, termite and title work coming back ok.
- Make sure you have your funds and have the ability to close the deal and assume the loan.
- Contact the lender and find out the EXACT details, payoff, fees, legal info, last day you can close before its too late, etc.
- Use common sense.
- Close at a legit closing agency.
- The process and deal isnt hard to do, don’t stress but you will need to hurry.
Dont be afraid to walk away from the deal. If it doesn’t feel right - walk away, there will be another deal down the road. The oppurtunity bus comes by the bus stop often if you are looking for it.
I am not a real estate guru by any means, but I have done a gazillion of them from my mortgage brokerage operations as well as an investor.
-mwg