Folsom, CA · Member since 2017 · 66 posts · 13 votes
My friend, who is current owner, has about 260k balloon pmt in 4 month ahead. This is a seller financing. Property is a duplex in South Sacramento, fruitridge and power inn area, and mkt value between 310k-350k. Owner wants to keep it. Owner hasn't credit score, no any asset, the only thing he has is cash income (non verified). And he can pay monthly debt up to 2k.
Does he has any option/ method to keep the property and solve the balloon pmt?
My friend, who is current owner, has about 260k balloon pmt in 4 month ahead. This is a seller financing. Property is a duplex in South Sacramento, fruitridge and power inn area, and mkt value between 310k-350k. Owner wants to keep it. Owner hasn't credit score, no any asset, the only thing he has is cash income (non verified). And he can pay monthly debt up to 2k.
Does he has any option/ method to keep the property and solve the balloon pmt?
is it wise to keep the property or sell it?
Thankyou
Assuming he can't simply write a very large check, it sounds like your buddy will be refinancing with a hard money lender.
Investor · Tampa, FL · Member since 2011 · 2k+ posts · 3k+ votes
7y
He is going to have a very difficult time refinancing unless he has a extremely large downpayment. Even then 2k for debt service a month is going to be cutting it close. With this limited amount of information it sounds like he should sell it.
My friend, who is current owner, has about 260k balloon pmt in 4 month ahead. This is a seller financing. Property is a duplex in South Sacramento, fruitridge and power inn area, and mkt value between 310k-350k. Owner wants to keep it. Owner hasn't credit score, no any asset, the only thing he has is cash income (non verified). And he can pay monthly debt up to 2k.
Does he has any option/ method to keep the property and solve the balloon pmt?
is it wise to keep the property or sell it?
Thankyou
Assuming he can't simply write a very large check, it sounds like your buddy will be refinancing with a hard money lender.
My friend, who is current owner, has about 260k balloon pmt in 4 month ahead. This is a seller financing. Property is a duplex in South Sacramento, fruitridge and power inn area, and mkt value between 310k-350k. Owner wants to keep it. Owner hasn't credit score, no any asset, the only thing he has is cash income (non verified). And he can pay monthly debt up to 2k.
Does he has any option/ method to keep the property and solve the balloon pmt?
is it wise to keep the property or sell it?
Thankyou
Assuming he can't simply write a very large check, it sounds like your buddy will be refinancing with a hard money lender.
does hard money lender require down pmt or income verify? the only owner can do is pay the monthly pmt, he can pay very high.
Rental Property Investor · Albany, NY · Member since 2016 · 37 posts · 42 votes
7y
I see two potential options:
1. Renegotiate with the seller to extend the balloon payment. Maybe he could offer the seller a slightly higher interest rate in exchange for X years of additional financing. The seller might agree to this if they have no interest in taking the property back. Your friend could then work on improving his credit profile so he would qualify for traditional financing.
2. Sell it and walk away with the difference. With that spread, your friend will have a few dollars to save/ put into his next property.
1. Renegotiate with the seller to extend the balloon payment. Maybe he could offer the seller a slightly higher interest rate in exchange for X years of additional financing. The seller might agree to this if they have no interest in taking the property back. Your friend could then work on improving his credit profile so he would qualify for traditional financing.
2. Sell it and walk away with the difference. With that spread, your friend will have a few dollars to save/ put into his next property.
TY for your advise.
He tried to reach the prior seller, But he doesn't has any seller info.
Rental Property Investor · Albany, NY · Member since 2016 · 37 posts · 42 votes
7y
I'm confused - Didn't you say he used seller financing? In that case, he would be making payments to, and owe this balloon payment to, the seller. In this case, he should have his contact information.
I'm confused - Didn't you say he used seller financing? In that case, he would be making payments to, and owe this balloon payment to, the seller. In this case, he should have his contact information.
I am sorry the confusing....I mean he has the contact info, but can't contact the prior seller.
I'm confused - Didn't you say he used seller financing? In that case, he would be making payments to, and owe this balloon payment to, the seller. In this case, he should have his contact information.
I am sorry the confusing....I mean he has the contact info, but can't contact the prior seller.
That's ok! Sounds like a difficult situation. Good luck!