1)Guys, thanks for all the input. Conclusion: don’t touch unless you can change the conditions.
2) Got same feedback from Bob Meister (from Subject-To): have the HELC refinanced to 2nd mortgage and buy subject-to.
3)Talked to couple if they could pay off HELC and the answer was again no. Explained that sell price is typical 93% + 6% realtors commissions gives $ 184K cash at closing. They need to bring $ 18K to the table. IF the had that money? Answer was no.
Couple is going to look into refi to consolidate the debt. Will follow up!
A divorcing couple called me to buy their 4 year old home: value $ 200 -$ 205. Mortgage 180K (3 year arm), Home Equity Line of Credit (HELC) $ 22K. So, no equity. They very motivated. I want to buy/control the home if I can constuct a good deal. It is in a nice neighborhood. Couple is willing to take a loss because they understand that they need to bring money to the closing table with a realtor.
Can not buy subject-to because people have HELC (that is a no-no per Rany and Charlie Frances). They can not afford to pay off HELC complete. They can afford some down payment (of HELC) or a monthly payment.
Any suggestions to create a winwin situation? Need HELP! Can you do lease option?
Dave is right that anything is possible if the sellers have sufficient motivation.
In order for you to develop a plan of purchase you first have to decide upon your preferred exit strategy and the plan B. Is there enough cash flow to pay for your plan and what is it?s source?
You could have the sellers put the property into a NARS®-type trust and make the payments on the HELOC. Get some cash up front for you. If they don?t pay, you are no worse off. If the payments are out of line I might lease it at six-month intervals, but I would not sell an option on it or sell on CFD.
Any appreciation going on? Some passive partners don?t mind subsidizing a property every month with deductable dollars that are transformed into a capital gain. Evidently, this is the defacto state of most of the California market.
Anything is possible with motivated sellers - Posted by DaveD (WI)
Posted by DaveD (WI) on March 21, 2005 at 08:45:02:
It’s hard to turn down a free house, but you don’t have any way to manufacture equity. You are strangled on flaky adjustable terms, and L/O doesn’t make sense unless the seller is protecting a humongous equity. Also will create possible double closing (seasoning issues down the road). Don’t see very much upside, yeah, you can add some value by reselling on soft terms. Here are a few things you can do:
The house needs to be perfect. You don’t expend $$$ or sweat to fix anything - they do.
Does the seller have any “toys?” You know, a Harley, boat, motorhome etc. he could sweeten your deal with. Goes without saying he leaves the big-screen TV. (If it is better than yours, you just got a free TV), the spa, the side of beef in the freezer, etc.
You could get the seller to “close” the heloc. Not pay it off, but close out the ability to write more checks against it. That would keep it from getting any bigger. Then they could make payments on it to knock it down over time. You did say they would be willing to take a loss. This way they can do it one month at a time for a period that makes sense to you. Say 6K down and $500 bucks a month for the next year. That’s 12K altogether and represents the 6% they were expecting to pay a realtor. Better to have a little equity than none at all. I’d sleep better if there was no heloc to begin with.
Your call… A lot of work and holding your breath to maybe get to a payday. I would have jumped on it years ago, but am reminded by a lot of scars. It’s easy to rationalize your way into a deal. Sometimes we are tempted by a crappy deal just because it is the ONLY deal on the table in front of us. Sometimes it is just better to pass :o(
gondek amanda e free colorado photos homes in plano tx usa today rss site lesage garden river wyckoff cremation ibm laptop battery 02k6878 biggest loser tv show starry night screen savor easy french recipes optus 49 cap williamsville ny news plus size lingery find a girlfriend san antonio pink floyd tour dates blind guardian tabs ww ask com free veronika zemanova mpegs removing sub flooring horse rv parks marine stainless faucets psp for cheap ksa resume samples discount night vision rifle scopes fruit of the spirit activities att calling card moldova oil burner water injection goobies railway station intercoastal homesite eulonia ga massage in va pthc cp pics peptoboonsmal sire mobius construction driftwood bred horses hornyteenies mario ringers knitting pattern for beginner spells and potions harry potter riverside home equity loans motorcycle rider training bc victoria gotti boys long term effects of clamydia prime rate by year mymyisabella customs kicks harvey oppmann novelty cordless phones baltimore birth injury attorneys lousiana auction houses emulsion polymer resume new england colonies map trail glades rifle range petition daylight savings time toonax free scary screensavers virginia special education lawyer windmills how they work symbols used in geometry gymnasts action pics pictures of appy horses intentionality hawaii karate reactions with diols building residential storage buell xb9s service manual yorkstatebank com faux fur by the yard vernacular region hammond la newspaper infantago apostle creed the prayer tagless polo caliberation arterial pressure transducers dr suess as a illustraor fk5 4qh superior swimsuit utah power light utility ge minigun european last will and testaments travco motorhome firesole aw cabinet assembly screws gloves how to knit hamster boat website for black women invader zim episode download stop arm cameras oleanders on grand isle allard k1 sears picture coupons zyban severe side effects locks interactive pjcrew arizona welding rod lawsuit attorneys california manganese lawsuit attorneys free humorous wedding toasts billabong watch actress beryl rivista de saude publica bonzibuddy download summer camps in new jersey