Posted by Nate(DC) on March 22, 2002 at 16:04:32:
Typically, getting in with little out of pocket cash means assuming the existing financing or taking the property subject to an existing loan. The problem here is that the guy doesn’t have legal title, so he can’t convey it subject to the loan/contract, AND the loan/contract is a balloon that is being called due. So that won’t work. For you to get this property you would either have to get the original seller to let you assume the land contract, or write up a new land contract with you, or else get regular bank financing and buy it outright. If you have decent credit you can often get 95%-100% bank financing, especially if you’re going to live in the property. That may be your best route.