Buying or Selling a Home/house


QUESTION: I try to buy a $200,000 house y borrowing $300,000 from bank and $100,000 from friend.  $200,000 were to pay the house and $200,000 to fixed the house.  Now, I cannot pay the mortgage no more and the bank took the house. I am in a $300,000 debt plus 7 year payments.  What turn out to purchase a house end up with no house and a debt of $300,000 plus 7 year payments.  How do I get it all back? Should I bring the bank and my friend to court to settle this or should I file bankruptcy?

ANSWER: Hey, Henry.

I don't understand how a bank would lend you $300,000 on a $200,000 house. That would be 150% financing, which I've never heard of in my 48-year real estate career. But based on what you have told me, I think your only option is to file bankruptcy. That, however, depends on your other assets. Just having a big debt that you don't like doesn't necessarily mean you can file for bankruptcy. The total of all your assets is going to be the deciding factor.

Good luck with everything.


---------- FOLLOW-UP ----------

QUESTION: Here is my predicament. I buy a house for $200,000. The bank took the house back.
But I borrow an additional $100,000 from bank and $100,000 friend.  Most of it to fix the house and pay payment plan which is 30 year, $1800/month.  I pay 7 years and thus cannot do it anymore and quit.  The bank took the house for $200,000.  I still owe $100,000 to bank and $100,000 to friend.  The bank did not considered the fixing price.  I was in debt $200,000 instead. Should I get the following instead:

1. payment for 7 years toward the house
2. fixing price to the house
3. down payment to the house

Hey, Henry.

I think your situation is sufficiently complicated that you need a good real estate attorney. Almost all attorneys provide 30-60 minutes of free consultation. Get all of your documents and facts together and go have a talk with one of them.

Be sure to consider bankruptcy as an option, so get all of your assets and debts together so the attorney can provide appropriate advice about that, too.


Buying or Selling a Home

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Russel Ray


Through home inspections, I provide an education about real estate. I'm one of those rare home inspectors who has been involved in real estate in many different capacities: as a Realtor (in Texas), as a property investor/flipper, as a teacher, and as a marketing expert (for Realtors and home inspectors). I believe that my experience as a Realtor and property investor provides me with a different viewpoint about home inspections in that I work for my Clients, but when there are other people involved in helping my Clients, then I firmly believe in helping them, too. That includes Realtors (both the seller's and the buyer's), repair professionals (e.g., plumbers, electricians, etc.). If I can get all the players (seller, seller's Realtor, buyer, buyer's Realtor, and repair professionals) playing in the same sandbox together to accomplish goals as a TEAM (Together Everyone Accomplishes More), then I believe I have succeeded in my job as a home inspector. My profession is, in my opinion, much more than simply documenting the condition of a property and then take the money and run. I am also a rare breed in that I don't believe that one inspection fits the needs of all Clients, and I have led the industry in understanding that fact. For example, the goals of a property investor are far different than the goals of someone buying a property to live in. The goals of a seller (a pre-listing inspection) are far different than the goals of a buyer (a pre-purchase inspection). To that end, I offer 14 different types of inspections, e.g., STANDARD, LIST, RENTER, BASIC, MAINTENANCE, SPOT, and more. I believe in giving the benefit of the doubt to all professionals in whatever industry they represent until they prove me wrong.


Over 42 years in all aspects of real estate--building homes, renovating homes, inspecting homes, Realtor.

National Association of Certified Home Inspector, Better Business Bureau of San Diego

Graduate of Texas A&M University; College Station, Texas

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