Posted by JoeKaiser on March 14, 2000 at 20:43:46:
So what did he say?
Joe
please help with L/O, (Bronchick,Ed Garcia,Kaiser,etc.)all posts appriciated(needed) - Posted by Todd Williamson
Posted by Todd Williamson on March 14, 2000 at 19:00:14:
Today my wife and I found a nice home in our market for $94,000(FSBO)3bedroom, 1bath, 1100SF garage…great area. Seller lives in florida I live in Colorado, he was trasfered and is currently making two mortgage payment…motivated!
My problem is my down payment is only $2,500 (would like no money down)and credit is poor due to recent BK from health problems and similar bills.
My question is: what is the best way to buy this house, I thought of a lease option. Please help, all info would be great ,I am a very motivated buyer.
here is some more info - Posted by Todd Williamson(CO)
Posted by Todd Williamson(CO) on March 15, 2000 at 16:44:54:
Yes we would like to occupy this home, the FMV is $97,000…so it is about 3k under market value. After speaking to the seller he said at this time he is not interested in a lease option(after another month of double payments he should be more motivated) I would like to give him a few options so I posted to recieve some ideas on how to structure the deal being that the L/O was denied.
Todd Williamson
Great opportunity to offer owner financing which equals CASH! - Posted by Judy Miller - President
Posted by Judy Miller - President on March 15, 2000 at 10:43:18:
This is a perfect opportunity, although not guaranteed to be a successful one, to offer owner-financing. The first question is, what is their underlying mortgage lien payments? Given your credit, which is uniquely considered with each borrower in each circumstance, if the seller owes more than 60% of the value of the home, owner financing will not work here. However, if it is 60% or less, you are in the game.
If you are in the game, then the idea is to offer the asking price, with your $2,500 downpayment, a 1st mortgage structured so that, when discounted and sold at escrow at the closing, it pays off the underlying 1st mortgage, and leaves the seller with a 2nd that is paying them cash each month!
If you are not in the game because the 1st is too big vis a vis the purchase price (greater than 60% in your case), then perhaps you could offer them a deal where YOU pay the underlying mortgage on some kind of contract for deed, or wrap-around mortgage. The only problem with this is that their debts or liens, if any, could affect the property before you get to take title, which is many years down the road.
Hope this stimulates some ideas.
Judy Miller, President
Re: please help with L/O, (Bronchick,Ed Garcia,Kaiser,etc.)all posts appriciated(needed) - Posted by Bud Branstetter
Posted by Bud Branstetter on March 15, 2000 at 09:53:42:
You don’t comment on whether the price is under market. I also take it that you want to live there. The seller’s main motivation appears to be relief from the monthly payment. Emphasize that in your conversation with her. No maintenance, guaranteed monthly payments. No need to offer her $2500. Why wouldn’t she owner finance with low down? No need to tell them of your finances. I would sit down with them except that is hard with the distance so have a good phone conversation to explore what they will do.