Please Help! - Posted by JUNE M. SMALLWOOD

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).

  1. 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.
  2. Get a signed contract subject to financing, survey, termite and title work coming back ok.
  3. Make sure you have your funds and have the ability to close the deal and assume the loan.
  4. Contact the lender and find out the EXACT details, payoff, fees, legal info, last day you can close before its too late, etc.
  5. Use common sense.
  6. Close at a legit closing agency.
  7. 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.

Please Help! - Posted by JUNE M. SMALLWOOD

Posted by JUNE M. SMALLWOOD on February 20, 2002 at 06:07:18:

I am brand new in the real estate business and I think I may have come across a good deal which I would hate to pass up because of my inexperience. A 3 BR 1.5 bath home with an assumable loan balance of 79K is about to be foreclosed. The homeowner is four months behind in his mortgage payments ($750 times 4 months) plus legal fee to the tune of 1K. Court date is March 15th. The house is appraised at 100k and the owner wants no less than 6K in his pocket. His asking $89K total to bow out. Please walk me through a proper procedure to handle this deal. I really would hate to blow this opportunity. Please help me! Thanks!