All Forum Posts by: Ontwon Smith

Sorry, just saw this. You may have to pass because unfortunately, your company policy doesn't allow purchases above 85% LTV max. You can offer him 10k in 2 years in anticipation of appreciation but don't feel bad if he turns down your over generous offer. Basically, you can really only offer him DEBT RELIEF BY TAKING OVER THE PAYMENTS OR HE CAN MAKE THEM HIMSELF. (He'll have to offer you some equity if you extend to him the GREAT FAVOR of making payments for him).

It's workable; by not paying the seller $500/mo. Preferably, 2nd note payable upon resale. **(You have to hit the "pain" points-FORECLOSURE IS COMING! He can end up with Nothing! **Stress the debt relief he's getting by you making the monthly pmt. **Stress your *"Credit Improvement Plan" by making up the arrearage and continuing the payment stream. That makes the SELLER LOOK GOOD to the bank!). Offer 5yr balloon to seller but 3 yr balloon to your buyer, By the way, if you wrap, the arrearage would come out of the new buyer's deposit. You bump the sales price 10% since you're offering owner financing and get a 10% down payment. (if not more). You can also set up a lease-purchase with your end buyer for 12-24 months. Don't forget to try to discount that 2nd when it close to paying seller off. In fact, add "Right of first refusal" in the mortgage language.. You'll be Fine with this one!