I have located several houses that I wish to purchase and unfortunately they are below 30k each. Of course no one will give me the money needed for just one of the homes. I found a company at the beginning of the week that says if I can get several together they can give me a lump sum payment. I understand that this is hard to find so I am not looking a gift horse in the mouth. The combination appraised value is 332,000.00. The “Broker” would like the owners and I to say that we are getting the loan for the full value of the appraisal and that the Mortgage company is going to finance 80% of it and that the owners are going to carry 20% in a second mortgage. Now the total amount that I need is 80% of the appraised value roughly 265,000.00, so a week or 2 after closing the owners quit claim the deed saying that the debt is paid in full. I don’t know but this sounds shifty to me. I may be paranoid since this (if it goes through) will be my first deal. I mean wouldn’t it be easier to say this is the appraised value of the properties and all I want is 80%?
- sounds a bit shakey to me ??? IF i understand you all your seconds will go away in 2 weeks after closing ???
SOUNDS like some one is bosstting the apprasials on the homes are all through the same broker ???
I would definately get as many independent comps as possible and see how generous or optimistic the appraisals might be. Next, I would contact an experienced mortgage broker in that state (by way of recommendation) and get his opinion on the deal. Sounds like a silent 2nd deal. Make sure you rely on your sources for advice on this one and not the seller…
good luck.
Lance