Re: More details… - Posted by Karl (Oh)
Posted by Karl (Oh) on November 15, 2000 at 24:09:45:
I recently looked into one mobile home with an assumable loan. I had the seller call the lender to find out exactly how the assumption worked. It turned out that he would still be responsible for the loan even if it was assumed. He was very surprised and very torqued off at the bank, and he never mentioned assumption again. I don?t know if this is typical for assumptions, but if this is true in your case, it would certainly help you negotiate. Maybe get the lenders phone number and call them yourself to find out.
Why offer him $500 consideration? Why not just take over his payments? He just wants out, right? Is there any equity in the home? Make sure he?s not upside down on the loan. If you?re going to take over this guys loan, the home must be worth more than is owed. If its not, ask this guy to pay down the loan. He may really be motivated, test him a little, ask questions. What if he doesn?t lease it to you? Then what? Winter?s about to hit! Does he know what can happen to an unoccupied home during winter? Have Dirk send some pictures of what can happen!
I?m by no means an expert, I?ve only done one lease/option deal. (Maybe I should have said that up front!) But just use your common sense to decide if its a good deal for you. Do you have Ernest Tew?s Getting Rich course? Its all about lease/option deals.
Tomorrow morning I would call Oakwood and find out how their assumption works. If the process sucks, it helps you sell your lease/option proposal to this seller. Since this seller thinks the assumption is his best option, I?d do the legwork to try to take that away from him. Then you become the best thing going.