Creative Financing to help Owner keep property

[Wendy S.]

Good day BP family.

Background:-

1.Seller has committed to sell house to company for $70,000.

2.House appraised for $135,000

3. Seller failed to get a mortgage, no income. Delivery driver income loss because of car failure.

4. Seller asked for $20,000 upfront to buy used car for work, pay bills (all of which are presently current) and have some money left over.

5. Seller would love to remain in the home.

Options we are discussing.

1. I purchase the house outright for about $103,000 cash. This price was suggested by me as fair price, seeing that I would be reselling in short order. So enough to cover selling costs with about $11,000 profit with sale.

2. Lend Seller money and put lien against title and seller repays at agreed rate.

Here is what I am thinking:-

1. Purchase with seller financing with $20,000 paid upfront amortized over 30 years.

2. Seller rents property for about $1,100-$1,200 monthly.

3. Seller buys back the home within 6 months for slightly under market value with a traditional mortgage.

Am I thinking along the right lines?

Overthinking it?

Or should I simply let seller proceed with pending sale for $70,000?

I only met seller recently when approached to rent 1/2 rooms from me by Oct 1. My model is per room rental.

Initially I offered to rent 2 rooms, store additional furniture for $1,400 with all utilities/internet paid. However, we got to talking and I began to look at how to help seller remain in home.

While I have never done seller financing before , I would hire an attorney to get the paperwork done and keep seller's agent in the loop. So all is transparent, commission still paid etc.

Any ideas/suggestions would be greatly appreciated. Have to decide by Tuesday Sept 27.

[Chris Seveney]

@Wendy S.

If he is already committed to sell for $70k how can they get out of it?