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I know of several homes like this on the market now, where I have suggested a 75% cash offer and have been turned down but allowed at about 80 to 85%. Please let me know if you'd like help locating the most "hungry" sellers. I am aware of three particularly strong opportunities presently -- one in North Valley, one in Willow Glen, and one in Santa Clara with Cupe schools.
And selling your home with any mortgage is more about the differential between the amount owed and the market value. Then you take about 6-7 percent for closing costs in Santa Clara County (seller pays the bulk of closing costs here) and you can discern your potential net gain.
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As to buying a foreclosure with cash (no loan), the bank may will probably take a cash offer over one that requires a loan if both are about the same price. This would simply be due to the fact that the cash offer can close quicker. However, they are probably not going to accept a cash offer lower tthan one hat on requiring a loan. The bank is going to recieve cash in both cases so why should they take less from you?
So, assuming, since you said that the area where your home is in has not depreciated, you probably still have some equity after paying off the reverse. That would be great! You sell the home and buy a foreclosure-in a more depressed area! What a win-win for you!
Did you know that they even have PURCHASE reverse mortgages now? How's that for crazy? Although I am not in your area, if I might be of help talking you through any of the process or answering questions, please give me a call! I know a lot of agents aren't well versed in reverse mortgages and how they work.
Good luck! It sounds like you are in a great position!
Seniors Real Estate Specialist
"Advice You Need, Attention You Deserve"
Basically, a Reverse Mortgage loan is not due and payable until the borrower no longer occupies the home as a principal residence (i.e. the borrower sells, moves out permanently or passes away). At that time, the balance of borrowed funds is due and payable, all additional equity in the property belongs to the owners or their beneficiaries. At that point, you are free to do what you want with those proceeds, including buying a foreclosure.
I would be happy to help you with your plans!
MBA, GRI, ABR, e-PRO, CMPS, RE Masters
REALTORÂ® / Mortgage Banker-Broker / Certified Mortgage Planning Specialist