need advice on sale of a 55 or older retirement listing

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Topic Author
tuffy7222
Posts: 132
Joined: Mon Sep 14, 2009 2:21 pm

need advice on sale of a 55 or older retirement listing

Post by tuffy7222 »

Received a call from my realator today that a buyer is interested in the sale of my house.
The house is empty as I bought another house and currently living in my new house.
Here's the deal as told to me by my realator. The buyer (who has no realtor) will pay $180,000
putting down $20,000 earnest money and at closing will pay $120,000 due at close of escrow
leaving a balance of $40,000 to be paid in a 2 year setlement of monthly payments.
My realtor did a background check and found his credit good or excellent.
His purpose for buying is for his Mother who is now living with him.
All this transaction is thru a SECURITY TiTLE Agency which takes the place of lawyers or banks here in Arizona.
Questions?
1. Who does he make payments to?
2.what if he can't make payments and forclose's
3.Who will then own the house
4. Can he be evicketed
5. any options and or what should be written in the contract

I'm not sure of what I should do or even get involved in this type of tranaction.

Need help and suggestions
Many thanks
2.
adamthesmythe
Posts: 5774
Joined: Mon Sep 22, 2014 4:47 pm

Re: need advice on sale of a 55 or older retirement listing

Post by adamthesmythe »

Safest would be for you to take a mortgage. If he is paying 120K CASH at closing you would hold a first mortgage. That would be very safe it seems to me. If he is getting 120K from a mortgage you would be a second mortgage holder and be much less safe.

If it's a mortgage he makes payments to you. Ask a lawyer what happens if he defaults.
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ResearchMed
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Joined: Fri Dec 26, 2008 10:25 pm

Re: need advice on sale of a 55 or older retirement listing

Post by ResearchMed »

If he has good credit, then why isn't the buyer taking a (small) mortgage for the remaining amount?

If the small amount is difficult to obtain, then he could take a larger mortgage and quickly pay of some/most of it.
(IF the "concern" is closing costs of the mortgage, in your place, I think we'd offer a tiny amount to cover some of that. Much less grief to be done with it...)

RM
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delamer
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Joined: Tue Feb 08, 2011 5:13 pm

Re: need advice on sale of a 55 or older retirement listing

Post by delamer »

ResearchMed wrote:If he has good credit, then why isn't the buyer taking a (small) mortgage for the remaining amount?

If the small amount is difficult to obtain, then he could take a larger mortgage and quickly pay of some/most of it.
(IF the "concern" is closing costs of the mortgage, in your place, I think we'd offer a tiny amount to cover some of that. Much less grief to be done with it...)

RM
Agreed. Unless you are having hard time selling the house, don't get involved with providing any kind of financing for the buyer.
One thing that humbles me deeply is to see that human genius has its limits while human stupidity does not. - Alexandre Dumas, fils
Topic Author
tuffy7222
Posts: 132
Joined: Mon Sep 14, 2009 2:21 pm

Re: need advice on sale of a 55 or older retirement listing

Post by tuffy7222 »

reachmed
I agree if he has good credit to take a smaller mortgage
I also agree to get this place sold,I'm thinking of reducing price to $175,000
and see if he will mortgage the rest to close out this transaction.
55 or older retirement places are hard to sell as compaired to regular community houses.
white_water
Posts: 232
Joined: Sun Oct 27, 2013 1:16 pm

Re: need advice on sale of a 55 or older retirement listing

Post by white_water »

The best, cleanest deal is all cash. He's hoping you want to sell badly enough to help with financing at his price and his terms. Not the best deal for you, IMO.

Other than a quick sale, what's the advantage to you for being his banker? You'll loose the opportunity cost of the money, and if the deal goes south you have a lot of heart burn and extra expense.
Topic Author
tuffy7222
Posts: 132
Joined: Mon Sep 14, 2009 2:21 pm

Re: need advice on sale of a 55 or older retirement listing

Post by tuffy7222 »

Just a bump to see if there's any more comments or advice
littlebird
Posts: 1869
Joined: Sat Apr 10, 2010 6:05 pm
Location: Valley of the Sun, AZ

Re: need advice on sale of a 55 or older retirement listing

Post by littlebird »

tuffy7222 wrote:reachmed
I agree if he has good credit to take a smaller mortgage
I also agree to get this place sold,I'm thinking of reducing price to $175,000
and see if he will mortgage the rest to close out this transaction.
55 or older retirement places are hard to sell as compaired to regular community houses.
They're not necessarily harder to sell, (in my community, they sell very rapidly) but with a smaller, almost completely elective market, they generally command a lower price than a comparable house in an all-age community.
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