Buying or Selling a Home/Buying with a mortgage

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Expert: - 5/9/2007


Question
I am trying to purchase a rehab 3 family house. Seller is offering to pay down his current mortgage of $100K to the $60K sales price and allow me to just pay the mortgage payments untill the rehab is completed. I will then re-finance. He claims that I can actually receive title even though the mortgage is still on the property...Is this  possible? If not can you think of a way for this to work so that I won't have to pay cash for this property, being that it still needs $50K in rehab.

Answer
Sure, MJ. You and he can do that. Only, why not have him open up a rehab account from which you will use the funds to fix up the place instead of paying down the mortgage. THEN when you have the property all dolled up, you can get a brand new loan for the THEN value of the property which will likely be over the $100,000 mark. To protect both of you, I would recommend setting up this agreement with a REAL ESTATE attorney. I wish you well.

Dick Dennis

Buying or Selling a Home

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Dick Dennis

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With more than 41 years as a real estate broker, I can solve most any problem presented. If I can`t, I do my research. Problems with mortgages, trust deeds, foreclosures, odd ways of conveying titles. Most any good Realtor can answer questions satisfactorily, but I answer questions that most cannot. Also, ask about my hard-copy newsletter, The Landed Gentry. It can also be sent to you via PDF.

Experience

Solving real estate problems for 37 years.

Organizations
National Association of Realtors

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Publishes The Landed Gentry, guest writer in Who's Who in Creative Real Estate, First Tuesday, Financial Freedom and many newspapers

Education/Credentials
e-Pro Realtor, Certified Distressed Property Expert, Who's Who in Creative Real Estate

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