when someone wont tell me mortgage

11 Replies

many people i talk to say that what is left on their mortgage is none of my business.

this last guy said "if you buy it for the right price it shouldnt matter how much is on the mortgage because ill just pay it off".

for 1) im assuming he isnt motivated and i am not getting that great of a deal.  but assuming makes an a, well... you know..  

whats a good reason for them to tell me their mortgage?

Hey @Account Closed  , I've talked to hundreds of sellers over the past couple years, and here's my take on it....

It doesn't matter if they give it to you or not if YOU know what you can offer on the property.  It's good information to have to negotiate, or to figure out equity on a wholesale deal....but the simple fact is, if you're making a cash offer, it is what it is.  If that doesn't pay off their mortgage, it's not a cash deal that will work anyway.

If it's something that requires you to know their mortgage, most of the time they'll tell you when you ask.  

Short answer, don't overthink it and make your cash offer. :)

@Derek LeBlanc

The sequence in when you ask this question is extremely important.  It sounds like you haven't built enough trust & rapport before you asked the question about their mortgage.

@Ellis San Jose  good call.  It's all about relationships.  They can call lots of investors. They chose to call you.  Make them like you before you get in to the rough questions.

@Shane Woods  

when would i be required to know their mrotgage?

1) You need to know if you have a deal or not. Determine how much net equity after total liens & arrears. Unless you run title on every lead, I would rather ask first then verify.

2) Creative solutions, sub-2, seller finance etc.

Originally posted by @Derek LeBlanc:

many people i talk to say that what is left on their mortgage is none of my business.

this last guy said "if you buy it for the right price it shouldnt matter how much is on the mortgage because ill just pay it off".

for 1) im assuming he isnt motivated and i am not getting that great of a deal.  but assuming makes an a, well... you know..  

whats a good reason for them to tell me their mortgage?

Why are you asking for the mortgage balance?  Seriously.  If you don't know why you are asking, then you should back way the hell up and get clear about the purpose of that question.  Are you asking because it's on a script?  Or do have a reason you want to know?  What will you do with that information? 

Not trying to give you a hard time, but asking questions without understanding what to do with the information could be a huge wast of time for you and the seller.

woah toughy....

im asking because my fellow investors want to know. as far as i know, it only helps for negotiation purposes for a wholesaler. and im not going to come out and say "tell me your mortgage NOW so we can negotiate a lower price" . ill make them an offer and either they accept or they dont ..  

I agree with Kristine Marie Poe .

But to answer your question of why you should know it...and to expound on why you should ask....

In my opinion, You only NEED to know their mortgage amount if you plan on using some kind of seller financing rather than offering all cash.  If your cash offer ultimately doesn't cover their mortgage pay-off, they'll probably tell you that on their own, and it is what it is.

Reasons to ASK, might be because you want to  use some kind of seller financing to purchase the property.  Or because you want to gauge motivation and/or equity before you waste your time going over to the house.  Or because you think you can pay less for the house if there is some equity and you offer them just a little over what they owe...There are plenty of reasons to ask, these are only a few.  But like she said, KNOW why you're asking.

Ellis, is that your high school yearbook picture? Had to ask, LOL, I know you're older than that.

I agree too, why are you asking?

It does require establishing trust before you dive into the personal finances of others.

When I ask, it's usually about solving a problem, needing to know to figure out what the seller walks` away with at closing, if the don't have a Realtor, they don't have a clue.

Some deals require an equity split on the seller's side, for many different reasons, they won't know what they are getting unless you run through the numbers.

Another is simply telling them that in financing the deal I have a few ways that I can utilize the existing loan and that could give them a better price (no, I'm not paying more for seller financing!) If I save on financing costs I can pay more.    

It's usually when you have a very motivated seller and they need to know what your offer really means to them. You need to learn how to prepare a closing statement, sit down with them and go through the seller's expenses that are customary, you'll get to that point and they are more likely to give you the number (about as they never know really). It's also a good time to have them call the lender and ask what the "payoff" is, not the balance, say to the end of the month and ask what the per diem rate is.  

But, don't base you offer on what they owe, you'll blow it usually if they sense you're working off their numbers. You really don't need it unless you're going deeper into a problem solving matter. :)

thanks bill

Originally posted by @Bill Gulley:

Ellis, is that your high school yearbook picture? Had to ask, LOL, I know you're older than that.

I agree too, why are you asking?

It does require establishing trust before you dive into the personal finances of others.

When I ask, it's usually about solving a problem, needing to know to figure out what the seller walks` away with at closing, if the don't have a Realtor, they don't have a clue.

Some deals require an equity split on the seller's side, for many different reasons, they won't know what they are getting unless you run through the numbers.

Another is simply telling them that in financing the deal I have a few ways that I can utilize the existing loan and that could give them a better price (no, I'm not paying more for seller financing!) If I save on financing costs I can pay more.    

It's usually when you have a very motivated seller and they need to know what your offer really means to them. You need to learn how to prepare a closing statement, sit down with them and go through the seller's expenses that are customary, you'll get to that point and they are more likely to give you the number (about as they never know really). It's also a good time to have them call the lender and ask what the "payoff" is, not the balance, say to the end of the month and ask what the per diem rate is.  

But, don't base you offer on what they owe, you'll blow it usually if they sense you're working off their numbers. You really don't need it unless you're going deeper into a problem solving matter. :)

Bill,

I am prohibited from using my High School picture due to the lapse in fashion sensibility in the 80's.  Powder blue tuxedos with a ruffled shirt may cause ocular damage to those viewing and I simply can't risk the liability.

@Derek Leblanc,

the seller needs to either, know, like, and trust you before you will get what he or she feels is sensitive info that you are asking for, or they need to have their hair on fire and are extremely desperate to sell the property.

Imagine if I asked you;

"What's your Social Security Number, date of birth, Mothers maiden name and any medical Issues you have.

Without the proper context, this would create discomfort, and come off as extremely invasive. You would tell me to do something extremely painful to myself.

But if I was a doctor and could save your child's life, everything changes.

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