What are my options?
I bought a Pa house on the court steps back in August. I had to evict the prior owner because they would not leave. On the day of the eviction, the previous owner’s son called me and asked if I would be willing to sell it to him and his sister. Naturally I agreed.
The son in law has a 750 credit score and not much to put down. They own a house and the bank is willing to give them a line of credit for around 8k against it. That same bank said they would give him a conventional loan to buy my house but he needs 8k for the down payment. They also said he could not use the line of credit money to come up with the down payment.
I told him to take out the 8k on the line of credit and go to a different bank for the conventional loan. Obviously FHA is out of the questions because he will not be living there. If that does not work I am not sure what other options there are, but I took a stab at a couple.
I am asking 42k on a house that is probably worth 55k from an appraisals perspective. Given that, he may not need any money down. Lets move forward and wait to see what it appraises for.
I could set up a side deal and lend him 8k. I get 42k on closing day and he does or doesn’t pay me the 8k over the next 3 years. I believe this could certainly get him in trouble with the lender, and I am not sure what my changes are about getting my money back.
Any other Ideas???