Trying to sell my home....gurus help needed - Posted by Michael

Posted by Michael Morrongiello on January 28, 2000 at 23:17:46:

I would suggest you get a couple of realtors to come and provide you with a CMA in TODAYS maketplace. You home may be worth more and conceivably might even be valued at LESS than what it appraised for over 3 years ago. It will depend on what is going on in the marketplace.

Another bit of research you can do on your own is to go to and run a ssearch for free of what homes similar to yours have sold for in the last 12 months.

As for the existing loan you have, YES it probably can be assume Formally however I would want to let off the hook liability wise if you go that route. You could take back a 2nd lien and that 2nd lien can be foreclosed in the event of default however that is simpler said than done (Been there, done that…).
Reality is that the 2nd lien is a very TENUOUS positon to be in.

Michael Morrongiello

Trying to sell my home…gurus help needed - Posted by Michael

Posted by Michael on January 26, 2000 at 14:58:33:

OK, let’s see if anyone can help me with this one:

I own a 2200 sf home in a nice neighborhood, owe 136K (assumable, if buyer qualifies), and owe my parents 7k which they lent me to pay my ex wife her supposed share of our equity a year ago to go ahead and move out. Started asking 159K FSBO in Feb 99 with no offers. Listed with a realtor in August. Dropped price to 154k. Still no offers after coming up on 1 year. Will consider taking equity back as a second mtg.

Have run ads offering for lease for 3 weekends, no luck. Started at $1400/mo, dropped to $1250/month. Payment on mtg is $1150.

This is a nice home in a nice neighborhood located in the 6th fastest growing city in the United States (Alabaster, Alabama, suburb of Birmingham).

I am selling because the mortgage is just too much for me alone (plus this nifty child support payment).

I’ll buy the course from whichever expert can get me out of this home with a deal I can live with…thanks in advance!

debt laden in Bham

What is the home worth? (long) - Posted by Michael Morrongiello

Posted by Michael Morrongiello on January 26, 2000 at 19:57:51:

You started out asking $159,000.00 for the home. Where did that sales price come from? Did you have at least 3 realtors come pitch you to list the property with them? Did they provide you a (CMA) compartive market analysis indicating what other homes of similar square footage, conditon, and location have sold for recently within the last 6 months?

The burning question I would have is; “Is the home worth $159K based upon what other similar homes are selling for…?”

Lets assume for a moment that the home is worth this value. Then I would suggest you cast a bigger net and start offering the home for sale with Owner Financed terms. Try this AD;

$16,000.00 Down, $1,256.00 per month
Lovely 3/2 … Call Today!

The idea is find a willing buyer who has reasonably OK credit and some cash to put down and most importantly DOES NOT want to go through the hassle and intimidation of having to obtain a traditional mortgage loan and that whole process.

Ideally, a clean credit self employed individual, or a couple with high debt to income ratios, etc. are ideal candidates.

You explain to them that even though YOU are offering the financing, you will need to act like a bank but with greater flexibility. Get them to fill out a credit application and advise them that you will check their credit, etc.

The way the program works is that many buyers are more than willing to pay a HIGHER price and slightly higher interest rate for the financng IF they don’t have to jump through a lot of hoops.

By offering seller financing I am NOT implying that you will have to hold the financing. No, what you will do is to structure the financing is such a way that when the right buyer comes along you can then provide them with the option of offering your own financng with the understanding that you can then SELL that mortgage to a note funder who will pay you immediate cash for the right to step into your shoes.
You sell the home for $159K and get $16K cash down. You agree to finance the balance of $143K in the form of a purchase money 1st lien mortgage.
The rate would be 10% and it can be amortized over 30 years payable $1,254…93 P & I per month.

You will not get FULL value ($143K) for your $143,000.00 mortgage. However if structured correctly you can sell that newly created mortgage for at the SAME time you sell the home and have $133,000.00 +/- funded to you in CASH. These funds along with the $16,000 down payment should be enough to pay off any existing debt and get you on your way.

Work with an experienced note buyer who can assist you in the transaction (feel free to contact me).

I would suggest you consider thsi option BEFORE you continue to lower your asking price


Michael Morrongiello

Re: What is the home worth? (long) - Posted by Michael

Posted by Michael on January 27, 2000 at 08:38:04:

Thanks for the details…sounds interesting. I got several market analyses and lots of realtor comps…there are 2 classes of homes in my subdiv…
1 1/2 stories, about 1900-2000 SF which are going for mid 140’s, and larger 3 or 4 BR homes, 2 stories, for 160 - 170K. Mine kinda falls in the middle, but with large bedrooms. That’s how I arrived at 159. It appraised 3 yrs ago when I purchased it at 162k.

Another thing I could do i suppose is that my loan is assumable (with qualifying)…it’s a fixed rate of 7.75% which is a little below market now…and I could take a note for 24k. What are the perils of doing this, other than the buyer defaulting on my note? Can’t I still foreclose if I am 2nd in line?