Home Buying in Hilton>Question Details

Dustin, Other/Just Looking in Outside U.S.

Home owner holding mortgage with his lawyer he needs 30000$ upfront to do so.

Asked by Dustin, Outside U.S. Fri Jun 22, 2012

We tried for over 3 months to get a VA loan which is ridiculous. Anyway we got denied after we were told that we were waiting for a closing date. The home owner is willing to sell us the mortgage for 30000$ and then we would pay his lawyer as if the lawyer was the bank. How do we go about getting a 30000$ loan without adding a significant amount of debt? Is this a lucrative deal as well?

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Before consider purchasing the property in this fashion, do protect yourself and consult with an attorney of your own...
0 votes Thank Flag Link Sat Jun 23, 2012
Dustin, it depends on what the homes' value is and how much you will be paying, once you add, up what is left on the mortgage with the 30,000$. For example, if your agent did a CMA on the house you want to buy and it supports paying $120,000 for the house, and you put an offer in for $120,000 which was accepted. The owner owes $90,000 on the mortgage, and you pay him the 30,000$ and then the rest of what is owed on the mortgage ($90,000 plus interest) to his attorney, you are in good shape. If the owner owes $100,000, you will be paying $10,000 more than the CMA would indicate what you should pay. This could be an issue to some degree for many reasons. First, it could be difficult to sell the house for $130,000 since the cma indicates its value is less, so you could be stuck and unable to sell. There could be many other variables involved in this situation. You should discuss these with your Realtor and attorney. Hopefully you have your own attorney representing you. If not, get one if you are seriously considering this situation. You also want this attorney to specialize in Real Estate Law. if you have any questions or want more information, please feel free to contact me. Gini 585-760-3880
0 votes Thank Flag Link Fri Jun 22, 2012
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