Use the $ 250 for the appraisal and let us know what FMV is, and we can answer the original question.
Short of that, the answer is, you got a really good deal, maybe, if FMV is high enough. If FMV is too low, then you should pass on this one.
Sorry for the late night sarcasm here, but you haven’t put up enough hard facts for anyone to relly offer some good direction for you, which is what I think you are seeking. Surely you knwo that you will get good advice, provided the details you post are sufficient.
Alright J.P. and the rest of you Wisened Sages. I plan on your help in this “newbie” navigating his first deal! I want to do this from start to finish, right here for all to see.
I found a 3 bed/ 1-1/2 bath/ attached 2 car garage home in a “not-too-bad” part of town. I called and talked to the owner, an older african american husband and wife, this is important as different cultures entail different motivating keys as opposed to others, in this case the parents need cash for kids in college. I found that there are two other mortgages on the house that equal about 55k. They asked 95k initially, this went down to 80k when I told her comparable sales (look what you saves me J.P.!)indicated about 76k. She let me know that they want the place sold ASAP.
The property is occupied now. They have had the house for 6 years.
NOW I ask you, guide me through this. They want to cash out, how can I make this happen, me with no money and all. I’d be looking to get and resell it as quickly as I could. Show me and the rest of the “kids” where the profit is, and how to get it with a win-win deal. Well Sages, I’m listening! Oh, should yours be the plan that gets the house, there’s a $250.00 check in it for you!
Your post isn’t entirely clear.
What is the actual real value? Is it 95K or 76K?
If it’s really 76K then where’s the deal?
If, however, it’s really 95K, why not have them refinance for the maximum thay can get and then assume the loan via PACTrust or the regular way. If there neds to be a second on it, construct the payments on the second to coincide with their kids needs for college money.
Sorry, Sages. When I told the owner that comps showed less than the 95 they were asking it was just to see if I could get her to come down a bit. She came down 15k! I do not actually know the value of the home. She has not had it appraised and the asked for figure is one that her husband says is “fair.” I’m looking into the comps on monday.