Posted by Brent_IL on October 02, 2003 at 16:32:57:
1- It isn?t enough to believe the loan is assumable. You have to know if it?s assumable before you make your offer. Very few loans are still assumable. From the LTV ratio, I?d guess that the loan is too recent to be assumable.
2- Do houses that are similar to this one rent for $550 to $600 a month? If they do, you will probably get the same rent rates that they do. If not, you are going to get market rate.
3 - I can?t see the owner taking the offer as presented. You might get him to sign over the place because he doesn?t want to deal with it, but it?s unlikely that he?ll pay you for the privilege. At the bottom range of $58,000, he could pay a commission and closing costs and still have money left over. My thought is that if they are making payments for a year with no incentive to list with a real estate broker, they have no immediate need for cash flow. He could list it for another year and come out ahead of your offer. Making a reasonable offer isn?t as important as making an offer that the parties deem workable. The only way to do this here is to talk with the sellers to see where they?re coming from.
I found a house for sale by owner that has been on the market for one year. They are making payments of $500 per year and owe $48000. The offer I want to make is that they will pay me $6000 (one years worth/payments. I will assume the mortgage which I beleive is assumable, and I will rent the property for between $550-$600 per month. If someone can let me know if this is a reasonable offer or what would be a suggestion, I would be grateful.
The only thing the property needs is minor cleaning and landscaping. Thanx for the help.
It sounds reasonable to me. I don?t have to pay you $6k to take my house and $10k -$20k equity for free. I would probably not want to make it that painful for the seller, I would offer two months payments $1k and a 12-24 mos. L/O.
Ok They are giving you 6000 dollars and a house with 20k equity? Are these people slow in the brains department? I would think someone who is in dire straights would sign over the mortgage and move on but if they have 6K sitting around why would they just give you the house??
Your seller is paying $500.00 PER YEAR?
Balance $48,000.00?
That?s Negative 6% as in the debt is going up. There is no way to pay $500 p/year on a $48k loan?
At 1% interest the payment is $154.39 / mos. $1,852.68 a year