sell on land contract then make them refi ? - Posted by Christen

Posted by Shawn J. Dostie on August 17, 2003 at 20:24:57:

I usually don’t rehab. I just buy low and resell, as well as buy and hold. 2-3 per year is my aim. I don’t have enough time to do more.

Good Luck,
Shawn(OH)

sell on land contract then make them refi ? - Posted by Christen

Posted by Christen on August 17, 2003 at 13:49:12:

If I sold on land contract would the buyers refi to pay me off or would they have to get a mortgage since the deed is not in their name?
Thanks
Christen

Re: sell on land contract then make them refi ? - Posted by Randy

Posted by Randy on August 17, 2003 at 14:00:03:

Christen, most lenders would consider that a re-finance because a CFD gives the buyer an equitable interest in the property from the date the contract is recorded. The disadvantage to a CFD is you have to foreclose to get the buyer out if there is a default of any kind. Depending on NY laws that can be a long and expensive process.

It’s up to lender. Have them shop around. - NTXT - Posted by Brent_IL

Posted by Brent_IL on August 17, 2003 at 13:58:54:

.

Re: sell on land contract then make them refi ? - Posted by Jonathan Rexford

Posted by Jonathan Rexford on August 17, 2003 at 13:55:12:

Some lenders will treat it as a refi if its a true Land Contract…I am seeing some Lease OPtions being treated as a REfi which is not correct but hey it puts more money in our pocket so who cares.

Re: sell on land contract then make them refi ? - Posted by Christen

Posted by Christen on August 17, 2003 at 15:59:02:

OK, I have a rehab and I am having a tough time selling. Put an ad in the paper Owner financing small down, $x per month. Got a million calls, tons of showings. How am I going to get theese people financed? Some have bad credit (550fico) but a few grand, all my B and C lenders need a years to 6 months title seasoning. 1 or 2 could go FHA, but it took me so long to got an answer back on an app that they weren’t interested when I got back to them, plus it would take forever to close. Went to a note broker they would finance a few for 85% loan to value then give me 87% of the first mortgage. The ones who had 600 and above that could go to the note broker had no $$. My cash out would be next to nothing.
what would you do?
paid 30K
rehab 15K in materials alone
appraisal $75K
we have a six month interest only note from the bank.
Thanks for any advice
christen

Re: sell on land contract then make them refi ? - Posted by Shawn J. Dostie

Posted by Shawn J. Dostie on August 17, 2003 at 18:33:55:

I have 1 year at my bank, however it is set up that I can switch it to a conventional. It costs the closing costs, but gives your buyer time so they can refi in 12-24 months. I then make money on the spread as well.

Good Luck,
Shawn(OH)

Re: sell on land contract then make them refi ? - Posted by Jonathan Rexford

Posted by Jonathan Rexford on August 17, 2003 at 17:38:21:

Are you working with a mortgage broker? Since you have a short fuse on your note I would be looking at holding some paper if you are scared of the balloon if you can’t get an extension.

There are afew lenders that do not have seasoning issues. Homecomings financial is one of them. Speak to your mortgage broker on lending programs.

There are a few good programs that have 580 100% financing available. I have sold some new homes that way and seller was allowed to pay 6% closing costs.

Re: sell on land contract then make them refi ? - Posted by Christen

Posted by Christen on August 17, 2003 at 19:23:44:

Do you do rehabs then sell? Do you always lease option them? How many a year do you do? Thanks for any info sorry about all the questions. I’ve never done a lease option before and didn’t think I would ever have to but the more and more I learn the more I think it might be a good way to go.
Thanks
Christen