Can we figure this out...?

I need some creative financing help to get a deal together. Here’s the situation:

Seller owes a total of $385,000 (that’s a 1st of $140K and a HELOC of $245K) on a house that he has listed for $399,900. I’m his listing agent.

The HELOC money is tied up in a brand new house he’s building nearby, along with a $306,000 one-step loan. This new house is 2-3 weeks from move-in.

Along comes a buyer for the listed house, who has a condo that’s listed but not yet sold. The buyer went to his bank to see what he could borrow without first selling the condo, and is told $330,000.

How can we put this all together?

The obvious ideas are for the buyer to get serious about selling his condo and aggressively drop the price until it goes.

OR… the seller finishes the new house, re-fi’s it to pay off the HELOC on the listed house, takes a $140K down payment from the buyer and carries a note for a 1-year balloon. (?)

Any better ideas? (or more creative, that we can use to get this done…?) Seller is VERY motivated.


What about a no ratio loan for the buyer?

get a Bridge loan tied to the condo to fund the purchase of your client’s house. Then the buyer can pay off the bridge loan when his condo finally sells. Or he can get real serious about selling it now. :slight_smile: