To get creative or not? (kinda long) - Posted by B.Weaver
Posted by B.Weaver on January 25, 2001 at 21:13:03:
I’ve read several newsgroups, etc. about different subjects, but I think this site has the most helpful “responders”, even though some of the newbies, and would-be newbies (like me) repeat similar questions, etc.
I’ve got a situation I’d like to try out on the experts:
I own a home in a rural area that I bought for $38K and lived in almost 3 years. I had approx $22K left on the mortgage when my wife and I decided to purchase and fix up an older(1911 model) home in her home town about 7 miles away.
The first house appraised for $59K, so I had enough equity for a down payment on the second house and 6 acres which I bought for $60K. I also borrowed an additional $40K for remodeling. In the new mortgage, I paid off the first house and combined that with the purchase price of my new house. for a total new mortgage of $122K at 7.25%.
Now that the year-long remodeling project is finished and we’re moved in, I’m really trying to sell the first house for a minimum of $50K (asking $55K). I’ve already got an interested buyer, but his income is limiting him to a HUD loan, and he hasn’t signed a contract yet, even though he’s still pursuing the loan at his bank. I went ahead and put an ad in the local free newspaper this week to try and generate additional callers.
My question: Would a lease/option deal work in this situation? I’ve got a pretty good relationship with my bank, and I really don’t want to compromise that, especially since my current residence is tied up in the same mortgage. I haven’t purchased a REI course yet, but I’m really considering it if I could learn enough to make this deal. I’m pretty comfortable making the payments right now, but as time goes on, I know I’ll become one of those “motivated sellers”. Which course would you recommend?
Sorry for the long post,
Thanks in advance