Interest Too High For L/O?
hello everyone, i'm not sure if this would be a good candidate for lease option......the seller is very motivated.....here are some specs..
fmv=125,000
owes = 110,000
her payment = 1156.15/month, i think her interest rate is around 10%.......she can't refi because of her credit, husband left her, has an 11 month old baby.......can't handle the monthly payment....she is willing to do about anything......but she would like to walk away with a little money (like everybody).....if we can deal.....
I don't think i can L/O this house for more than $1200 and that's not enough for me to get into this deal.....she also said she would consider even selling the house to me (so i could get a lower interest rate) and then L/O her house back from me....not sure i would want that .....what would you guys do ......if you need more info. let me know.....i thought you guys might have other ideas........
kenny
Can you qualify for a refiance and what would you do with the property once you did? If you can refiance, I would put it under contract, and offer to pay an amount equal to the security deposit at her new place.
Find yourself a L/O tenant before you close the deal. Have her QC the property over to you and refinance. You also need to find a broker that will treat this like a refianance rather than a new loan.
I would agree that a L/O with the current underlying loan is probably not a good option. Also I WOULD NOT L/O it back to the current owner.
thanks dnvrkid,
i have never done a refi on a property i didn't have a mortgage on........is this going to be very difficult.......i do have the credit for a refi......are there brokers available that will do a refi like this?
thanks, kenny