Posted by Ray S(FL) on July 28, 2001 at 12:42:35:
Trevor,
The best way to determine closing cost without guessing is call a title company or attorney who you want to use to do the closing and ask. I usually call my attorney’s title clerk and she gives me the numbers right over the phone. Of course I will tell her the detail of the deal… If you don’t have a title company yet now is the time to find one.
If I were to assume a No Qual loan it would not be in my personal name.
My .02
Ray
Very Green with Potential Deal… HELP… - Posted by Trevor
Posted by Trevor on July 27, 2001 at 17:13:57:
I am brand new but think there may be a deal in a house here in AZ:
Motivated Seller Asking $59,900 obo
FMV: $85,000 - $90,000
Back Taxes: $4,800
Terms: No qualifying. Owner says pay closing costs and back taxes and take over payments. He is selling to the highest bidder on Sunday Night. He told me today (friday) no one has called about it except myself.
My questions are the following:
I just moved to Arizona and would like to buy this property and either flip it or do a lease option. 1)If I put in a bid Sunday Night, how soon would I have to come up with the $4,800 to make it current.
2) If he is asking $59.9K or best offer and I get it for $52k for instance, how would I take over payments? what if the payments are based on $59.9k?
3) Having never done this before, is a bid the same thing as an offer and therefore should I bring a written offer?
I am very new and if someone has some advice to toss my way I would very much appreciate it.
Thank you,
Trevor
Re: Very Green with Potential Deal… HELP… - Posted by SHAUN IN STL
Posted by SHAUN IN STL on July 28, 2001 at 02:07:01:
It sounds like this guy is trying to run a 5 Day Sale. There is a book and website out there that claims you can sell your house in 5 days using an auction method where the house will be sold to the highest and best bidder. Basically you take a whole week and market like crazy and then have an open house sat and sun and then sell the house sun night via a round robin auction. The price you see in the paper is a opening bid price that is put there with the hope that people will see the low price and then come and bid on the property, thus driving the price up until it is close to a fair market value. Sometimes this method works and sometimes it doesnt. I could be totally wrong on what the seller is trying to do, but when you mentioned that it was going to be sold sunday night and the low figure in the paper it just sounded like it maybe one of those deals! Now the author tells his readers that they don’t have to sell the house if they don’t get enough money and to let people know that all bids are non binding. So you may want to do some more digging to see what is the sellers motivation.
Re: Very Green with Potential Deal… HELP… - Posted by ken(ILL)
Posted by ken(ILL) on July 27, 2001 at 21:10:51:
I personally wouild get the deed from the seller, then try to deal with those that are owed, stating that you now have posession of the deed. You may need to show proof. After all is said and done, if you have the deed, you have at least several months (I don’t know your forclosure length) to get some one to buy or lease it from you. You then pay the owed monies from the new buyer (Tenant). Good Luck
Re: Very Green with Potential Deal… HELP… - Posted by Matt B
Posted by Matt B on July 27, 2001 at 17:52:04:
It looks like you need some more details here. First of all, you are asking us about the payments. We don’t know that. The seller does. Ask them how much the payments are on the house that they want you to take over.
As far as a “bid” being an offer, I would assume that is what they are looking for in this case. They want an offer from you, especially since they told you that you are the only one that has shown any interest in the house.
If all they want is closing costs and back taxes, how would they be offering the place for $59,900 “or best offer”? I would think that all you need to know is how much is owed on the house, the amount of back taxes, (which you know already) and what closing costs are going to cost. I am assuming that they have a qualifying assumable loan that they want you to qualify for to take over. I wouldn’t do that personally, but it may work for you.
A lease option may work for this, but not if you have to come up with $4,800 immediately. You would probably not be able to collect a deposit that high from a tenant/buyer for that price range of house. This could be a flip candidate if you get it under contract and find a buyer for it.
You need more details from the seller to figure out what you can do here. Go talk to them and tell us what they say. You need to know how much is owed, what the payments are, what they mean by you taking over the payments, etc.
Re: Very Green with Potential Deal… HELP… - Posted by Grayl
Posted by Grayl on July 27, 2001 at 20:11:06:
What part of Az. If your talking Phx. you wont get much of a house for that kind of money. If you want, email me more info if it’s in Phx. I know the valley well and will help any way I can Grayl AZ.
Re: Very Green with Potential Deal… HELP… - Posted by Trevor
Posted by Trevor on July 27, 2001 at 18:15:14:
Hey thanks Matt, that helps. I was also confused by the newspaper ad because it said no qual, pay back taxes and take over payments. And then it says $59K or best offer. That threw me for a loop.
Why would you not assume a no qualify? Also, do you know the quickest way to determine all closing costs?
Thanks for you help Matt and I have an appointment with the seller tonight and I will get more info.
Trevor