All Forum Posts by: Patrick M.

I have a sold a home I own on a land contract. The current contract is for 1,150,000 at 6.5% amortized 16 year with a 7 year balloon.

That results in payments of about 9500 a month to me.
Taxes on the home are about 25,000 per year

The buyer has been current on the payments but late on taxes.

The buyer would actually like to do more like a 15 year note and no balloon and have me carry the term. I am OK with that if needed.

I have about a 380k mortgage on the place. So it is a wrap basically. Yes I could pay that off if needed at some point but not what I want at the moment. My payment is about 2k per month.

The buyer is struggling on the taxes so I want to have him pay me the taxes as my bank now wants to escrow them and add to my payment. I am OK with that but it makes my payments more like 4k per month to include the escrow for taxes.

That would also make his payment an additional 2k on top of the 9500 per month. He will do that.

I have the opportunity to change the deal. is there a better way to structure it? How should I be looking at my note that I have with my bank, should I accelerate payments?

Any other thoughts?

He has been paying for 2.5 years. and leased it for 18 months before that. We communicate well and he has strong income and very much wants to stay in the home.

I have a sold a home I own on a land contract. The current contract is for 1,150,000 at 6.5% amortized 16 year with a 7 year balloon.

That results in payments of about 9500 a month to me.
Taxes on the home are about 25,000 per year

The buyer has been current on the payments but late on taxes.

The buyer would actually like to do more like a 15 year note and no balloon and have me carry the term. I am OK with that if needed.

I have about a 380k mortgage on the place. So it is a wrap basically. Yes I could pay that off if needed at some point but not what I want at the moment. My payment is about 2k per month.

The buyer is struggling on the taxes so I want to have him pay me the taxes as my bank now wants to escrow them and add to my payment. I am OK with that but it makes my payments more like 4k per month to include the escrow for taxes.

That would also make his payment an additional 2k on top of the 9500 per month. He will do that.

I have the opportunity to change the deal. is there a better way to structure it? How should I be looking at my note that I have with my bank, should I accelerate payments?

Any other thoughts?

He has been paying for 2.5 years. and leased it for 18 months before that. We communicate well and he has strong income and very much wants to stay in the home.

I have a home that I sold on a land contract. I do not wish to be the "collector" of the payments any longer. Does anyone have any suggestions on a good note servicing company that I could use? Have you had personal experience with one?

Thanks a million!

Patrick

Hi does anyone know a good lawyer in the Chicago area that knows of Trust arrangements?

I am the seller

Thanks

Pat

no not taxes

Just wondering if it was possible. Rate of return only...understood on the DOS

Thanks

Pat

I have good underlying financing where I owe about 380k

Can I sell the house for 1150000 say at 7% 15 yr and wrap that around my current financing?

Pat

Credit score is 816

has been paying me 5k per month for what will be 18 months soon.

He can pay about 5k on the second - which I think would be 450 with a 15 year amor and 7% rate.

Pat

The terms are looking like he will come to closing with 120k cash, he will have a loan for 480k and I would do a second potentially for 450k

Hi

I now live in Portland Oregon and our family has a new home here. No financial emergency.

OK we have a home in the Chicago area that after having on the market for a bit, we found a solid tenent to lease the property with option to buy at $1150000.

They will have gone through 18 months of on-time payments of 3950 per month plus $500 earnest accrual.

Now they are looking to try to buy the house. The appraisals last week were around 1MM-1,050,000 - comps are hard to come by of course.

Now I should mention that the current buyer actually wants to try to get us to the 1,150,000 that we agreed upon.

OK so he can come up with $120k cash and has access to a 500k loan which would be first position. He is looking for me to carry the second for 4-500k

While I understand the 1st bank would have to approve the deal and do appraisals....any comments on the deal such as...

What interest should I charge for the second to reflect my risk etc....

What creative ways can I claw back toward my sell price goal?

Should I do a 15year amo with a 5yr balloon?

I have a good real estate lawyer and an agent and a mortgage guy handy that will help me as well.... but I wanted to tap the knowledge here for ideas...

Thanks!

Pat