Buying home with eminent domain compensation - Posted by Dan

Posted by James on May 31, 2010 at 09:47:36:

How would a lender know that the city has funds for the new buyer? Is that being advertised? Consider the LTV you could get on a cash out refi? You may be only able to get an 80% LTV. Which I figure to be 239,200, add that to the funds the city will give you as the buyer. Would that give your money back?

Buying home with eminent domain compensation - Posted by Dan

Posted by Dan on May 30, 2010 at 10:32:26:

I am buying a home on 1.7 acres. The city has an eminent domain on 1/2 acre with a monetary compensation to the new buyer. If I go for traditional financing,will the bank see this and demand all my money, some of the money, or none of the money?
Would it be better to pay all cash, get my money, and then turn around and refinance. The home was listed for $299,000…I am in contract for $262,000. So I think the new value with 1/2 less acre will come in around what I am paying.