Help with an offer?

Looking for some ideas with this offer?
House appraises for 157,000 and seller has a 116,000 mortgage on it. Sellers credit is not super great but good (630 FICO). Sellers wants 20k in cash. House needs about 4-5 k in repairs.

My thought here was to have the sellers refinace at 90% bringing there mortage up to 141,300 and then assume it. Knock down the 20k cash that they want to 15k because of the repairs. This is as far as I have gotten. My question is:

If I did this there would be about 25k on the table, if I paid the 15k to the seller that would leave 10 left over. How would I go about collecting that 10k for myself? I figured if the seller knows that its there because after all they are the ones refinaincing, they would have to know its there. How would I state this in on the REPC? Any answers??

Or any ideas about this one?

Thanks, Joe.

Howdy Joe:

I do not see the deal working the way you laid it out. You will not be able to assume their new loan but only buy it sub2 the loan and they will still be liable. In my opinion they would have to be really desperate and It does not sound like they are. What are you plans for the property after you buy it? If you plan to resell there is no room for carrying costs, points, title policies, commissions, etc. You could find a lease purchase buyer perhaps to put up the down for you and sell to them for the $157,000. Use their money to do your deal

Good luck and thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737
512-301-9171 home
512-587-6177 mobile

I agree with Ted, based on what you’ve said I don’t think this is a deal. What is the sellers motivation? Are they being foreclosed or do they just want to sell? Doesn’t sound like they’re motivated enough to let you take it sub 2 or they wouldn’t be asking for 20k.

A little more info about the sellers situation would be helpful.