BP! Help me get creative and get out of my condo!

2 Replies

Hey all,

I need some help from the creative minds here. I live in a condo that is an entry-level price point in my town but which is not FHA approved. This has proved a big hindrance in selling; we've had at least a half-dozen folks, typically first-time homebuyers, who were interested but who couldn't pull the trigger.

Today we had a showing with a very interested buyer who can actually go conventional. However, the agent tells me the condo building needs to be 70% owner-occupied for them to get a mortgage. We're about 55%. She brought up seller concessions as well. I don't know details yet, and they have a second showing scheduled for tomorrow.

Help.

I'm a motivated seller. We've been here almost 10 years when the original plan was to stay for 2 or 3. I can't take it anymore. We bought in 2005 when the market was high (if I knew then what I know now) and would be lucky to break even. So I can't offer a huge price drop. That's not the main problem anyway - the buyers' mortgage has been. I've considered renting it but probably couldn't get the monthly payment we'd need.

What are some of my options? I'm thinking seller financing, downpayment assistance (and we hold 2nd position? How long does that last?), something along those lines.

And if I did offer seller financing, how the heck would I buy something else myself? I know ... use the knowledge gained on BP to find my own seller financing. But what are the other options?

Thanks in advance for any ideas and help! BP, get me out of here!!

@Karin DiMauro

It is hard to say without actual numbers, but I deal with a lot of condos that are majority owned by investors (less than 51% owner occupied). You stated that the association is over 51% owner occupied, so buyers should be able to get approved by a local bank for a non FHA loan (depending on health of association reserves and quality of management). I deal with sub $100k condos that I rehab so I have multiple exit strategies. Either sell retail, sell turnkey or rent. If I were dealing with over $100k condos, my option would really only be to sell retail. Let me know if you want to further discuss using numbers. Hope this somewhat helps.

Thanks, @Brian Ortins . The buyer would use a local bank, so I hope that helps with flexibility on the 70% threshold. The condo is over 100k (approx 130k range) and I can only sell retail. It's a very desirable town, but condo rents don't command much more than $1,000-$1,200. I've thought about vacation rental (nearby beaches and casinos) or student rental (nearby colleges) as well, tho neither option is very appealing.

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