Yes? or No? - Posted by Jim
Posted by Jim on March 07, 2001 at 11:21:02:
Seller has a beautiful house appraised at $200,000.00 and owes a 1st of $187,800.00 and has had it for 1 year. Realistically the loan is still $187,000.00. Seller will be 2 months behind on the first of April
Seller will deed me the house “subject to” the existing 1st mortgage. (There are no other liens)
Now…The interest rate on his 1st is 10.5% and the monthlys including Taxes & Insurance. Payments seem high to me to be able to get from a buyer. They are $2,000.00 per month.
This house is only a year old and in excellent condition (Turn-key property)
Would you do this and if so how would you structure it to be most beneficial to you?