Posted by Mark, Ca on June 23, 2004 at 24:03:54:
I?ve just picked a great deal but, have questions in regards to seller financing and assuming a loan or subject to
1533 sq ft. 3 bedroom 2 bath single family home, seller financing $110,000 at 6% ( $550.00 a month) for ten years amortized over thirty years with $50,000 down and a small first loan ( equity loan) of approximately $25,000
Area sq ft cost for homes in the 1,200 to 1,500 sq ft $248 to $298 a sq ft. I drove by and even asked to see inside my Comparables…
I place the value at $396,450
Total Purchase price $185,000, repairs $40,000 - $50,000 ( major structural damage, I?m a building contractor and have down this before so I know my numbers are right) increased value $396,000 - $225,000 = $171,000
The Daughter of the owner has been given power of attorney to handle the transaction. Who should I be making the check out to for $550.00 the monthly payment ? The Owner or the Daughter that has been given power of attorney? I was told the Title company will make sure I?m paying the right person.
Being that I?m assuming the first loan of $25,000 will the beneficiary/Lender call the loan due because they might see that the payment is coming from someone else other than the owner?
Thanks so much for your all