Assume The Mortgage
The owner is calling me today to negotiate. I offered to assume the mortgage ($1,600 per mo.) because she is 4 mos. behind and $5K deliquent on her real estate taxes. The house is worth $270K and she owes $200K on it. If I put $20K into improvements the house could easily be sold for $275K-$300K.
I need advice on tailoring this deal with her. I plan to start low ($5K cash) and go as high as $15K. Her current interest rate is 9.5% so I plan to refinance the house as soon as possible to use the equity for improvements. Basically her main argument is cash. I think I can offer like $2,500 cash now and then another $2,500 before December and then the remaining cash on a monthly basis.
The house has been on the market for sale since April. Some homes on the street have gone for $360K and she has lowered her price from $330K to $270K.
Any advice would be appreciated.
Mike
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