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07-26-2013 05:41 AM
Found house, its listed with Realtor: House is empty and has been for 30 days.
Offered seller land contract ( owner finance) x amount down xinterest and x yrs. No inspections, no apraisal. I waived them all.
Seller agrees and want to move forward...seller lives out of state and is tired of dealing with renters. Last one took two months to get them out....thats why its empty and BACK on the market after being rented out for 2 yrs.
Catch? Seller has NO money to bring to closing and realtor says closing will run approx 10,000.00 and he gets 1% of it.
Realtor says need to have attorney draw up legal land contract.... ok no problem.. Attorney will run 1,500.00 and again says sellers have zero money to pay attorney to draw it up. OK, no problem.
Then right at the end of the conversation he says: By law I need to inform you they are currently 2 months past due on the mortgage.
WHAT???? WTH? why didnt he tell me sooner, like when the seller said they would do land contract or when I made my offer?
When is 3rd payment due? He dont know? Have they contacted the bank? Yes and bank has not started forclosure yet. I asked 4 times...what do the taxes a yr run?? Avoids the subject. So are they current on taxes? Avoids the subject.
Just says he has again contacted attorney to draw it up.
I told him until I knew where things stood directly from the seller I wasnt comfortable about paying a attorney to do the contract and drag it out and dela and them get 3 payments behind.( there was so many things he didnt know and the seller would and its faster than play message tag when its in default and empty)
I asked to talk to the sellers so I could get answers and if I was ok with the answer then do the land contract and I would sent 2 payments to the bank asap to get it current and just deduct them from my down payment. So IF it takes 3 wks to wrap it up, the payments are current and bank is happy. 3 way call was fine, I am not trying to cut him out of his %.
He said ok , I left message for attorney and Seller and he should hear back from either or by afternoon and would contact me as it is a urgent iss that needs to geo quickly. That was 4 days ago.
2 days ago I pulled property taxes... HIGH but current. I got their address off Taxes and sent them a letter. right or worng I am not sure but I dont feel the realtor is working in thier best interest.
He says it is ok, no extreme rush, they have time before the bank forcloses. ( mind you... its empty, no power, tall unkempt grass, no realtor sign in yard... it look abandoned)
He has had it 18 days and says it ok , its still a "fresh listing" they have time.
Mr. loan officer, I know I am 3 payments past due but my realtor says its ok becuase its a "fresh listing"..aggggrrrrrr why has he just dropped the stupid ball?
I cant drop down that much money not know where it stands with the bank. I am not packing up and moving only to get notified by the bank they are taking it back.
And why does doing a simple land contract/owner finance have 8,000.00 in closing fee's plus attorney and realtors 1%? What am I paying for? He said he would send me a cost break down since I was paying it and not the seller... ok... well that was a wk ago and he avoids the subject when I ask him about it.
I feel like I am working with a realtor that have limited knowledge in this area. And I dont think he is working hard for the seller at all!! I'm afraid the seller will loose thier home and I loose out too. Just stinks!
07-26-2013 06:47 AM
I recently did one of these and they buyers total closing costs was around 1,000$ in atty fees (no realtor involved.) HOWEVER - in your case there are WAYYYY too many warning flags here... the biggest concern is that most mortgages will call the entire loan due and payable once they find out that the current owner has sold. This would mean that sometime in the future you would either have to come up with the entire loan amount or have the lender foreclose.
07-26-2013 07:02 AM
I have done 2 of these and wrote it up on my computer, have both buyer/seller noterize it. Easy. But I have never dealt with a realtor in the middle and I cant see paying 8,000 in closing cost for nothing. I could understand if it was going bank finace and inspections and such.
His comment was " they have time, I do alot of REO". But why drag his feet?
Is he trying to make them go total default?
Since the seller sold on Land crontract and its not paid off and can be defaulted on and taken back by seller , they legally have not 100% sold it, in the event I default, they still have to make the payment, the same as they are now that the renter stopped paying.
I am so close to walking away and find another house! I feel sorry for the seller if they again agree to a sale price and he makes them loose the sale.
07-26-2013 07:54 AM
Until all issues with the sellers' underlying mortgage are settled, I wouldn't touch this deal with a 100 foot pole! Not even if the closing costs were $1,000 dollars.
07-26-2013 05:49 PM
Best and cheapest route would be to let it go into foreclosure and buy at auction or get a short sale offer put through to the lender.