Posted by David Garcia on August 23, 2002 at 19:22:20:
You can just offer him a couple thousand & let him leave. You keep all his equity. You accepted a very low amount of down payment with that CFD. Usually I ask for 7-10% of the purchase price.
Whatever you do, dont make it seem as you’re taking advantage of him because he can mess up the home.
By the way, I live 1 hr west of Chicago, If the home is less that 2 hrs away, I might be interested in buying it or selling it for you.
I got a call yesterday from the buyer of a house I sold CFD almost two years ago in IL. He has had a job change now has decided that he doesnt want to buy the house. He put down $2500 and has made payments for 20 months. He also did some remodel work to the house, maybe $2000 worth. However, he has been consistently lateon payments and missed part of one payment and I have trid to let him make up the money he owes.
He made the following offer: He would continue to rent the house until a buyer is found. He will run the ads and show the house to prospective buyers. When the house sells he would like to get his DP plus a little of his remodel money back if he can.
He owes me about $48k payoff and the house should sell at $55k +/-. I am thinking that I should offer to give him 3,000 plus half of anything over $52k. THis gives me a little more than I would have got if he would have gone through with the contract and he gets a little cash to move for being considerate.
He could just walk away and leave me with a house that is 1000 miles away. Sure, I would have $7k of his equity, but I think it could be a real hassle and I would probably sell for 50k just to get rid of it.
Anybody got any suggestions or views that I might be missing.
Posted by Joe Eckburg on August 22, 2002 at 17:48:21:
Where in Illinois?
For how much did you sell it to him? I’m fairly certain in Illinois that you can evict instead of foreclosing on a CFD if the buyor has less than 5% equity. Did he or you record the CFD? His postition is stronger if it is recorded.
Sell the note to a local investor and let the new note-holder deal with it.
Joe.
Well The thing you have to ask yourself is this. Is this the kind of guy that will trash the house if he is angry off at you. Sometimes I will do a similar scenario with people because they can do far more damage being mad at me than me doing something nice for them. Try to negotiate a deal with him, don’t necesarily take his first offer. and make sure you bring up his past amount due from late payments etc… to soften the blow of your reduced offer. but I think giving him a few thousand dollars is a good idea as it could avoid several thousand dollars in damage to the property.