Thanks. More info please. - Posted by Sara_CA
Posted by Sara_CA on June 02, 2008 at 11:21:57:
Thanks for the expert advises.
My property is a 20 acre lot, zoned agricultural, in a tiny town in Kern County, CA. The buyer wants to build a 3000 sq ft house on it. I donâ??t know what the ARV would be after the house is built. I donâ??t know the size of his construction loan either.
Well, the buyer just raised his offer to $160K to get me to accept his offer. $50K down. $110K due in 2 years. Straight Note. No interest. No payments for 2 years while he builds his house and refinance to pay me off. He says he is the president of a construction company that builds carports, storage units, etc. He doesnâ??t care if the soil on my property is alkaline. I am glad he doesnâ??t mind the alkaline soil, but his job title doesnâ??t really say anything to me though. Arenâ??t most construction companies in poor financial health these days?
Still, this is the best offer I can get. The next best offer is $10K down, owner financing the rest. No payment for 2 years while the buyer figures out how to grow agriculture on the 20 acres!
As you can see, my price is already extremely low even in this market. Should I really lower my price even more? It was already for immediate cash sell. I am getting many calls, just no solid cash offers. People still want me to carry paper.
In the worst-case scenario, let say he defaults on his construction loan and the loan company forecloses on him. Who do I hire to bring the first current and add the amount fronted for the 1st to my loan? A title company? Then I have to hire a foreclosure company to do my own foreclosure on him to get title/become owner, while taking the property subject to existing debt. Can the foreclosure company do both of these tasks??? Saves trouble if they can.
Any further insight is greatly appreciated. Never been the 2nd lien holder before, and kinda feeling the stress. And yes. I too, am very grateful to the experts who regularly share here, and for the availability of this great forum. You guys/gals are the best!!