Posted by buyslake@surfbest.net on August 05, 2005 at 11:56:51:
What do you mean by closing both loans at the closing table? You mean tear up the 15k owner loan? or what?
Need Responses Fast! Selling my house! - Posted by buyslake
Posted by buyslake on August 05, 2005 at 07:46:10:
I have a 3 bedroom, 1.5 acres, completely remodeled.
Appraised for $125,000
I will sell for $109,000
I told buyer they could buy it with no money down.
How do I write this up?
I want to include 10% down required by a mortgage company for the buyer in the purchase price. Also closing costs ~$3,000 into the total purchase price
$109,000 what I need
$12,000 10% down
$3,000 closing costs
$124,000 price on contract, still under appraised value
I showed my house to two people yesterday that are very interested if I can write this up so they do not have any out of pocket expense. One of the couples is already approved for a $140,000 mortgage but wants to do a no money down deal with me.
Please advise. I have a standard real estate purchase agreement. How do I write this up and any suggestings for lenders?
Adam 218-259-1677
Re: Need Responses Fast! Selling my house! - Posted by John
Posted by John on August 05, 2005 at 10:15:50:
The way to do this is sales contract for 124K seller will contribute 3K for closing costs. Create a note for 15K on your terms. Let the buyer obtaining financing for a 124K purchase at 90% LTV the loan amount will be 110K. Close both the mortgage companys loan and the owner financed loan at the closing table. This is legal to do but you must tell the lender what is happening, Failure to do so will result in loan fraud and jail time for the both of you.