She said, “take my house please?” - Posted by Jim IL
Posted by Jim IL on June 17, 1999 at 21:16:30:
Well, today we met with a seller who has already agreed to “sign the house over” to us.
The woman is facing foreclosure, and has some time left, but not a lot.
Here it is:
FMV: $60k-$63k (according to recent sales data)
Loan balance: $46k (a little high)
Re-instatement fee: $5k, give or take
No repairs needed.
I’ve never really delt with this type of deal alone before, so I am at a bit of a loss.
The seller has agreed to just allow us to take the home “subject to” or whatever vehicle that will get the home into my name. She is not concerned with the mortgage loan remaining in her name. In fact, she likes the idea, because I’ll make the payments and she feels that will help save her credit a bit.
I got her to sign a Release of information form tonight, so that I may contact the lender tommorrow, and find out the specific numbers.
Has anyone EVER had any luck getting a lender to discount or re-arrange the arrearage?
What steps should we take, other than a title search to make sure of the liens etc.?
Should I just have the seller sign the contract “subject to” the existing mortgage loan, or can we use a “quit claim deed”?
We would like to avoid having to pay any closing costs.
Also, what about a land trust deal? Where we have the seller put the home into a trust, and then assign us beneficial interest?
What works best here?
The payments are at least $250/month less than market rent for the area, and there is approx. $10k in equity.
We want to be sure and do all our appropriate due diligence.
I know there is not a lot of room here, but if we can get this all squared away, we can sell “No qualifying” and make a few bucks. I am hoping the “terms” will compensate for the lack of equity.
Any ideas or input are GREATLY appreciated.
Thanks in advance,
P.S. Thanks again to everyone here. The last few weeks we had a slow time and got a bit frustrated, but this week we have been on fire. Thanks for all the advice and encouragement to “keep at it”.
Today we met with 2 sellers, the one above and another that is going to be a L/O. The L/O deal is REAL sweet. The home was listed for 30 days with a Realtor at $70k, appraised at $82k and today we go the seller to agree to a 24 month (2 renewable terms) L/O with a sale price of $54k.
If the “subject to” deal goes thru, it will be number 4 for the week!!!
Rock and roll baby!