Home Buying in Margate City>Question Details

NJ, Home Buyer in Atlantic City, NJ

We rent a high end Margate condo. The landlord wants to sell it to us and will hold part of the mortgage. How does this work?

Asked by NJ, Atlantic City, NJ Thu May 10, 2012

The condo was listed at 639k, then dropped it to 589k and he is offering to sell it to us for 550k with 200k down payment and he will hold 350k. Do we get a mortgage for 200k and then also pay him on the 350k he is holding as a "second mortgage"? Where does the rate come from on the 350K since he is "holding it"? I want to get as much info as possible before we respond to him.

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Your agent should be able to handle all of that for you and give you advise. Have you asked him/her for help on this matter?
0 votes Thank Flag Link Thu May 10, 2012
I have a great agent on board who has been helping us in our house hunt in general. Our landlord is aware that we are looking and I believe this prompted him to make this offer out of left field. I would not pay 550k but that is another story. Im sure we could get him down but Im just curious how the process of holding a mortgage happens in general.
0 votes Thank Flag Link Thu May 10, 2012
NJ,

Fact that the condo was listed at 639k and later dropped to 589k, doesn't mean that 550k is the right price. You should engage local real estate agent, who is familiar with the market, to guide you through. Additionally, I doubt you can get 100% financing.
0 votes Thank Flag Link Thu May 10, 2012
Are you saying that the seller is a real estate attorney? Well that's great FOR HIM. But who is going to represent and negotiate for you? Just give it some thought. BTW, I've been an ABR, Accredited Buyers Agent for 18 years. Again wishing you the best of luck.
0 votes Thank Flag Link Thu May 10, 2012
Hes a real estate attorney so Im sure he plans on handling this himself but thank you.
0 votes Thank Flag Link Thu May 10, 2012
OPPS..... I see that my photo shows my service area as being Bucks County. I am a REALTOR at RE/MAX Platinum Properties in Margate and have been servicing the Margate area for over 12 years. I have been a Realtor for 30 years.
0 votes Thank Flag Link Thu May 10, 2012
The rate on the money that he is holding is "negotiable". This is what needs to be negotiated between him and you. Does he have a Realtor? Do you have anyone representing you? It is really best to have someone else negotiate for you. A Realtor would be best, since a Realtor from Margate knows the area, and can show the seller "comps" of other sold properties to help you get the best price, as well as informing the Seller of various terms and rates that would be available to you without the seller holding money. As far as getting a mortgage for $200... this means that the seller would have to take 2nd place behind the mortgage company. Is he willing to do that? Don't be surprised if he wants to be in first place and expects you to not have any other mortgage ahead of his. There are other ways to come up with the $200,000. If you want to have a Realtor represent you, give me a call and I'd be glad to discuss this situation with you and represent you in this transaction. You can reach me at 800-339-JUDI (5834). Best of luck to you.
0 votes Thank Flag Link Thu May 10, 2012
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