The seller doesn't want to share mortgage info

Raleigh, NC · Member since 2017 · 34 posts · 25 votes

Quick question. I'm working on a deal where the seller does not want to reveal any mortgage information. They will only tell me that they have owned the property for 8 years and that the mortgage owed is small and current. I've got a solid ARV on the property and want to present the seller with a multiple option letter of intent 1) an all cash offer (deep discount) and 2) one on terms; small down payment with the balance payed back over time. Without the mortgage information, what's the best way to approach this? Thanks.

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Corby GoadeBusiness Member

Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes

Why do you need the mortgage info. The seller will decide what works for them regardless of their debt or what you or your buyer consider a good deal. Knowing what they owe on the property won't change that, but it could muck up your negotiations. If a buyer or agent told me what I should be allowed to make on my property, I'd be waiting for the next offer.

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Bill F.
Investor · Boston, MA · Member since 2015 · 1k+ posts · 3k+ votes
8y
@Andre Vitalis Not 100% clear on why you must know their mortgage balance outside of looking for the answers to the test. Business is a partial information game.
The seller has no need to tell you anything about their mortgage; it has no bearing on the value of the house. If you can't convince them to give you the info, you'll have to figure it out yourself.
The DoT is public so you know the date and amount, figure out the prevailing rate at the time of sale and you'll get a good idea of what the balance will be without prepayment.
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Patrice Penda
Investor · Hoboken, NJ · Member since 2016 · 464 posts · 179 votes
8y
@Andre Vitalis
You can probably look up that info if you go to the county clerk.
But why does it matter to you on this particular deal?
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Andrew Kerr
Rental Property Investor · Everywhere, USA · Member since 2012 · 689 posts · 525 votes
8y
@Andre Vitalis - you could always try going down to the court house to see if a note was recorded. But in a scenario like this, its hard to estimate. You could always figure they put 20% down of the purchase price, and go from there.
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Corby GoadeBusiness Member
Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
8y
Why do you need the mortgage info. The seller will decide what works for them regardless of their debt or what you or your buyer consider a good deal. Knowing what they owe on the property won't change that, but it could muck up your negotiations. If a buyer or agent told me what I should be allowed to make on my property, I'd be waiting for the next offer.
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Andre Vitalis
OP
Raleigh, NC · Member since 2017 · 34 posts · 25 votes
8y
Hey All, Thanks for the feedback. I always say... 'You learn something new everyday!' This is the first time i've come across a seller who didn't want to share that information. This is my 3rd potential deal as an investor. According to a majority of you who responded, i don't necessarily need mortgage info to make the offer. I guess i can adjust later. For me, knowing the mortgage info is useful for negotiations and helping me to determine my exit strategy. Should it be a Cash, Lease Option or 'Subject to' based offer. More equity, i focus on 'wholesale' and 'seller finance' based offers. Little equity, i focus on 'lease option' and 'subject to' based offers.
@Andrew Kerr I like your idea. I looked up the sellers property tax info. I know what they paid for it.
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Max T.
Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
8y
public record shows all recorded liens. A realtor can look it up for you
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Ken Jernigan
Wilmington, NC · Member since 2017 · 132 posts · 70 votes
7y
This info is all online. You don't need to go to courthouse or have a realtor do it. Check register of deeds for DOT.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
7y
Originally posted by @Bill F.:

@Andre Vitalis Not 100% clear on why you must know their mortgage balance outside of looking for the answers to the test. Business is a partial information game.
The seller has no need to tell you anything about their mortgage; it has no bearing on the value of the house. If you can't convince them to give you the info, you'll have to figure it out yourself.
The DoT is public so you know the date and amount, figure out the prevailing rate at the time of sale and you'll get a good idea of what the balance will be without prepayment.
Concur Bill just pull the current mortgage U will see the amount and the date it was recorded. and if its current ( you have to believe them ) if its not there is probably a NOD which will explain all monies owed. Only time you really need a deep dive into the mortgage is if your going to buy on a wrap or sub too.. if your paying cash who cares..
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Teddy Smith
Real Estate Broker · Wilmington, NC · Member since 2016 · 236 posts · 126 votes
7y
You can go thru the online public records and find the mortgage info. Type in "online public records *insert city*"
If you're a broker, you use Realist.
This will give you a very broad idea of the mortgage situation. Most of the time I just "eyeball" it to see how long they've had the mortgage. If it's something that could have a major impact on the deal, you could use an amortization table to find the balance. That's overkill %90 of the time though.
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