I have two Condos in GA, which both needs work done to them. One is a two bedroom that had a slow leak behind the bathroom shower wall and apparently there is mold there. The other has old pipe problems, but doesn’t need too much work done to it. If I sell the one with the mold/water problem behind the shower wall for a price below market value, will I just have to pay off the rest of the loan that didn’t clear in the sale, or will the bank not allow me to sell below market value because there will be an outstanding loan on the property?
For example: The property valuation shows that the property will appraise for $138,000. However, if I sale it for around $80K because it needs some work, will banks be willing to refinance the 58K as just a loan that I will need to pay off, or will I still need to pay the same amount on my mortgage, even though there will only be 58K left on the loan? I’m just confused about what to do with this bad property… Any info will help…
The loan is attached to the property. If you owe $138,000 and you sell for $80,000 than the $58,000 difference will have to paid for at closing.
Unfortunately, there is not a good answer here. If your property were in foreclosure, an investor may be able to get the bank to do a short sale, but what’s in it for them?
Thanks for the advice Tom. Looks like I’m just going to have to come up with another plan. Hopefully I can sell it to another investor who has experience in repairing properties. That way, I can sell it for the loan amount and not gain any profit or loss on the property. Thanks for the info.
maybe someone on here can help you with this. Post some numbers…
How much do you owe on the loan? Is it current?
How much will the condo appraise for?
How much will it cost to fix the bathroom?
Aside from the mold damage, does the rest of the condo need updating? and if so est. cost?
Painting, carpets, appliance, etc.
That’s a good Idea. I owe $109,000 on the loan. The condo last appraised for $138,000. All payments are current. It cost approximately $5,000 to repair the bathroom because it is back to back with the 2nd bathroom and I was told that both walls will need to be replaced. It will need to be painted and the carpet will need to be replaced. Appliances are up to date, so they won’t need to be replaced.
The address of the condo is 3556 Panthersville Road/Unit 1010/Decatur, Georgia 30034 … if anyone wants to pull a property valuation on it. It is a two bedroom/two bath. Maybe we can even work out a deal so that the equity can be pulled out to repair the condo during the sales transaction. Thanks…
Your actually in a good position for a quick sale on this condo if your in a strong sellers market.
You can easily sell this condo with equity in it. Most investors will want 20% equity, so a sale for the loan amount is very easy to do. I would market it to an end user at around $119K and put 10K in your pocket and offer cashback at close to cover the repairs needed. This means the buyer will secure a loan for about $125K which will give them 10% equity in the condo. Not to bad for a primary home buyer really. And if you really do not want to make money and just get rid of it, list it for alittle less or at 125 and put in very motivated, will entertain all reasonable offers…
You can even call the we buy ads and see if your condo meets there requirements and maybe someone will come in with a cash offer fast.