We are looking at selling a property on a note. When this is done, who pays what? We own the property with money from a heloc. Would we pay the taxes, or our buyers? What is the best way to do this? Sale price is $90,000, $10,000 and $80,000 at 7% for 15 years. Any thoughts. Thanks in advance.
the property owner pays the taxes.
during the year of sale, the taxes are prorated to the closing date. The buyer gets $$ from the seller for the seller’s portion of the taxes at closing, then the buyer pays all of the taxes at year end.
and $80,000 at 7% for 15 years
%7 is a gift…try low double digits…You arent getting alot of money down on this deal…Are you holding the deed in trust to bypass a possible forclosure proceeding?..
I am sorry, but I have no idea what you are talking about with the holding the deed in trust to bypass the foreclosure? We would like to have a higher interest rate, but any higher and the payments would not be affordable in our area. We need to get someone in and start covering our holding costs.