I have a lady who needs to sell her house.
ARV: $540k
Loan Amt: $591k
Mort Payment: $2400
Obviously, she is upside down. I was thinking she is going to need a short sale.
I would offer to buy around $327K (cash).
Now, she is wants $40k to take the house off her hands, that she will seller finance, and she will also pay the 1st years mortgage.
What do you think a good offer would consist of, if one even exist?
I suspect that your seller has s screw loose. If you can’t get her to understand how it works, I suggest that you walk away.
She can’t carry the paper. She doesn’t own the house and she doesn’t have any equity. She can’t have $40,000 for herself. She doesn’t have any equity.
That 591k still has to be paid, and that is a lot more than the house is worth. If she is going to do a wrap around mortgage, she has to get 591k to cover the existing mortgage. Plus the 40k she wants, she thinks she can get 631k fir a house worth 540, tops
The only thing that will work is a short sale, but she doesn’t seem to understand her position.
You can try to explain it to her, but I suspect she has to suffer for a bit longer before she understands. Some folks aren’t good with math, and she’s one of them.
Thanks Tatertot. Thats where the misunderstanding comes in at. She doesn’t understand her position. She is still hung up on a year old appraisal that came in at $850k. I am only going to explain to her the situation one more time, then I’m walking away.
order a new appraisal if that will make her feel better. only order it if you think you can make the deal work once the value comes in lower. Plus if you get the value to come in low enough, you will be able to hand it over to the bpo agent to influence them in a major way.
Check back with her every 6 months. There isn’t anyone going to give her what she thinks the house is worth, so it will still be there.
Eventually, she will realalize that she isn’t going to sell it for what she wants.