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.
need advice on sale of a 55 or older retirement listing
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Re: need advice on sale of a 55 or older retirement listing
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.
If it's a mortgage he makes payments to you. Ask a lawyer what happens if he defaults.
- ResearchMed
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Re: need advice on sale of a 55 or older retirement listing
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
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
This signature is a placebo. You are in the control group.
Re: need advice on sale of a 55 or older retirement listing
Agreed. Unless you are having hard time selling the house, don't get involved with providing any kind of financing for the buyer.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
One thing that humbles me deeply is to see that human genius has its limits while human stupidity does not. - Alexandre Dumas, fils
Re: need advice on sale of a 55 or older retirement listing
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.
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.
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- Posts: 232
- Joined: Sun Oct 27, 2013 1:16 pm
Re: need advice on sale of a 55 or older retirement listing
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.
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.
Re: need advice on sale of a 55 or older retirement listing
Just a bump to see if there's any more comments or advice
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- Location: Valley of the Sun, AZ
Re: need advice on sale of a 55 or older retirement listing
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.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.