I hope this isnt a dumb question. I was wondering if your making an offer on a property with equity already in it say they owe 150k on a 185k house. Is there a way for me to get the equity for myself in cash or would that be like a lease option. I’m trying to understand what happens to the equity already in the house. Does the seller pull the equity before selling or what? Just need some help sorting out this thing. Any suggestions would be greatly appreciated.
Well if they owe 150K on a house worth 185K and they sell it at 150K then the seller will be walking away from the home with no money, Now can you tap into any of that equity. yes you can, first off the home needs to appraise at the 185K. Then you can try and get a loan based on appraisal value not sale price, or easier way is to get cash back from the seller at the closing table in the form of credits such as plumbing or carpet upgrades. appliances, etc…
let’s put it in easier terms: whomever owns the house gets whatever is left after all leins are paid after closing. ownership is defined as the name(s) on the deed
Can you give us more details. Would you buy this $185k home for $150K?
Or are you asking, if someone owes $150 and sells for $185 what would their profit be?
I was confused about equity in a property and the numbers are made up . I understand now i talked to my Aunt who is selling her house about her equity and what she is doing with it.