All Forum Posts by: Sean Dougherty

Thx.I'll speak with their lenders and my title co.

Sorry I was unclear. Buyer is putting $50k down. So loan will be for $450k.

Quote from @Bruce Lynn:

Amazing lender is allowing 2% down?  That's rare.

You could probably do a 2nd for the $10,000.

Talk to your title company or title attorney and have them draw up the deed of trust and loan terms for the 2nd.  Typically high interest like 10%-14%, maybe more if it is a 2nd.  Maybe depends on value of the house and credit worthiness of the buyer.

Also 1st lienholder may not allow, depends on who that lender is and what requirements they have.  Some want to see skin in the game.  But you've already found one that will allow 2% down, so maybe they will also allow borrow to borrow for the rest.

I'm not a lender, but chances are 2nd needs to be disclosed on their credit report and to the 1st.  Normally they're asking where those funds came from.  Some allow gifts, but need a gift letter.

Maybe tell us more about the deal? Whats the ARV? Good shape or bad shape? Hard money for the 1st loan or normal bank financing? Local bank or national lender? Reno needed or move in ready? If reno, where are the reno funds coming from?

 Thx Bruce, 

Sorry, not sure how the 2% interest rate idea snuck in there. No. This is a conventional loan, not sure what the rate is. 

Home is brand new. Will appraise over our rock bottom selling price of $500k but buyer is "making the case " that he only will qualify for $490k, DP included. 

So I thought to offer the option of "I will carry the remaining $10k and work out terms favorable to both of us."

Question is, how to transact that? 2nd mortgage, lien, separate contract, include in escrow or private notarized contract between buyer and seller? Ect.

Selling @ $500k

Lender providing $490k

Can the remaining $10k be carried by seller? Will brokerage allow?

If so, should it be a separate contract? Should it be outside of current escrow? Should the $10k loan be a lien on the house?

Selling @ $500k

Lender providing $490k

Can the remaining $10k be carried by seller?

If so, should it be a separate contract? Should it be outside of current escrow? Should the $10k loan be a lien on the house?

Selling @ $500k

Lender providing $490k

Can the remaining $10k be carried by seller?

If so, should it be a separate contract? Should it be outside of current escrow? Should the $10k loan be a lien on the house?

Dealing with multiple probate properties that are in pre-foreclosure. Special administrator assigned as PR. He does not want to petition court for sale due to my offers being short sale offers. 

Special administrator suggest I contact bank directly with my purchase offers. If bank likes my offer, they can petition the court to sell. At that time commissioner says he would sign off on it. 

He will provide me the loan numbers and 3rd party authorization. 

Has anyone had experience with this scenario?

Quote from @Wayne Brooks:

Quote from @Sean Dougherty:

Quote from @Wayne Brooks:

@Sean Dougherty Is your a short sale offer, less than the amount owed? If so, the PR/estate gets no value from it so no need for them to go through the process.

Yes this would be a shortsale offer. I do not see how allowing the home to sit vacant for year or years before it is foreclosed, brings value to the estate. But I do inderstand shortsale would not be a financially profitable option either. 

So is it pointless to make short sale offer to special administrators or PRs?

Yeah, they get no value from it, so why bother.

 I appreciate your input Wayne. You've answered many of my questions here on BP. 

Recently a special administrator advised me to make short sale offer directly to the bank and if the bank was interested, they would petition court for a sale and then special admin would be willing to sign off.

I have loan numbers of loans and believe I could get 3rd party authorization from special administrator as well. 

What are your thoughts on this?

Quote from @Wayne Brooks:

@Sean Dougherty Is your a short sale offer, less than the amount owed? If so, the PR/estate gets no value from it so no need for them to go through the process.

Yes this would be a shortsale offer. I do not see how allowing the home to sit vacant for year or years before it is foreclosed, brings value to the estate. But I do inderstand shortsale would not be a financially profitable option either. 

So is it pointless to make short sale offer to special administrators or PRs?

Probate property in foreclosure. PR is a court appointed special administrator. Special admin will not submit my purchase offer to lender or for court approval. They have no other offers and alternative is foreclosure. 

When I pushed the matter, the special admin informed me I could reach out directly to the lender with my offer and the lander could then petition the court for a sale if they liked the offer.

Will lender even look at an offer from an unauthorized 3rd party? I don't think so. 

Any experiences? 

Need some ideas/suggestions. I recently JV'd on a project with a homeowner with intent to sell upon completion.

I financed the remaining 30% of a new build. Plan was to have my contractor take over the building permit thus avoiding the 1 year sale restriction for Owner Builder.

Just found out that the current permits were pulled over 3 years ago. Local regulations provide up to 3 years for contractors to final their builds. Owner builders have 5 years to complete. Sticking with Owner builder permits is my only option.

Is there any creative way around this sale restriction?