how to make this work

5 Replies

this guy has said he would do a lease option.  i checked out the house and he is totally open to doing it.

house is worth 150k.  170k on mortgage.  brings in 1425 monthly, and spends  roughly 4500 annually on taxes .

anything that i can do in this situation? it looks like a lease option wouldnt work anymore right?

Here is the thing about upside down houses

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How old is the mortgage?

Look at the amortization table below.

In the graph above,

In years 1 - 5, each monthly payment is mostly interest on a 30 year note.

You notice it is not "50-50 interest paid vs principal paid"  in year 15.

In year 29, it is like 99% principal.

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What is the term of mortgage (ex) 20, 30 yrs)?

How much percentage is paid toward principal and interest in this current year?

Can the owner pre pay some principal over time, like $200 per month?

200 x 36 months = 7200 toward principal

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What is the chance of appreciation?

I ignore appreciation

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So it depends on underwater homes.

Do a 5 year lease, 12 months at a time, with extensions.

The buyer needs to get an appraisal that matches the loan balance so the seller does not bring cash to closing.

You are welcome @Account Closed

I grew up in MA and went to HS and Col in VT.

Go Bruins!  Best Canadiens!

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