help with selling house - Posted by Bill (WI)

Real Estate Investing Real Estate Law
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Re: help with selling house - Posted by James

Posted by James on March 25, 2005 at 09:52:27:

I don’t have enough information to say that you are in fact being asked to take back a second, but the numbers you present make it appear so.

The example: Listed price $ 95,000
Appraised price w/ 10% 105,000
Loan amount @ 80% 84,000
Balance 21,000
Amount to forgive 10,000
Difference (amt needed to fin.) 11,000

RE commission on $105,000 6,300
RE commission on $ 95,000 5,700
RE commission on $ 10,000 600
RE commission on $ 11,000 660

Note: Cash available for distribution is $84,000, the amount being financed by the First.

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Re: Not true, don’t run - Posted by Christen

Posted by Christen on March 24, 2005 at 15:44:29:

It is legal, as long as the bank doesn’t think the buyer brought 20% in a bank check to the closing. The banks will be aware of the second and it is between you and the buyer what they pay and when as long as the terms don’t push their debt to income over the edge.
You aren’t going to realize that 10% when you sell the property and also if they don’t have the $ for a down payment then they probably don’t have the money for closing costs, so you’ll probably have a 6% concession too. So that is 16% that you won’t realize when you close, I don’t know how big your spread is but 16% is a lot. Also with subprime loans they tend to be strict on seasoning I would request the mortgage brokers, or bank loan officers name so you can make them aware of it and make sure it is OK.

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Re: Not true, don’t run - Posted by Bill (WI)

Posted by Bill (WI) on March 24, 2005 at 15:56:45:

Thanks again. What does seasoning have to do with me as the seller? Once I sell and if I get my asking price and we nullify the second, arent I done and over with it?

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