OfflineHello All,
What I have is a property is FMV is around 121,000 Owner owes around 87,000 on Mortgage and has a line of credit on the House for 20,000.
So, Not enought room to wholesale this, Was looking to do a Sandwitch L/O on this or a Morgage assignment.
He just went threw a Devorce and can't handel the payments by himself so he would like to move foward.
So what do you do with the line of credit?
There is not an actual monthly payment on it. Should we try and get him to roll that into the morgage?
Thanks
Jay C
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Jay C
Why this didn't show up on the active board?
Jay C
There may likely be a minimum payment on the line of credit, $50 or something. The bank sees that as a 2nd mortgage so to speak (can't get any more loans against the house -- only allowed 2).
If the lease payment covers both monthly payments and expenses, then you should be okay. The LOC will get paid off with the mortgage when the end buyer closes on the house -- make sure your option price covers paying off both.
Thanks, Nadine
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Nadine, just make sure your lease payment covers both and it should give you a little for monthly residual income. You need to get a non refundable option fee up front and CYA with your contract.
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If I read your post right you said there is no payment on the line of credit. If he does not owe money on the line of credit just have him close the line of credit before you put your name on the deal. This is based on a sandwitch L/O.
Steve.
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Steve. If there's no payment then there can't be a balance on it so close it. That will definately make the deal much more appealing to the end user.
"Nothing can stop the man with the right mental attitude from achieving his goal; nothing on earth can help the man with the wrong mental attitude."
Shaun Omar
DSD Investor Group Inc
www.dsdinvestorgroup.net
www.decoscapesinc.com
http://h1.flashvortex.com/display.php?id=2_1315708016_24517_144_21583_70...
Jay C.
find out if there are any fees to close the line of credit; banks will charge for closing line of credits, and even more if it's before a certain period of time.
If there is a balance you may be able to pay it off with the deposit from a buyer; then use the monthly rent to pay 1st mortgage and yourself.
Sounds like a great sandwich lease option!
wishing you great success,
valerie
Valerie
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Thanks for all comments.
There is a balance of around 20,000 but he said that he just pays what he can.
I know on some Lines you have to pay interest only which could only be a small amount I did suggest he close it. That would be the only way we could help him out with a Lease option.
Jay C
Jay C