Offer Made On Home, What Next?
I have been doing Sub To deals for the past year. I have a home that just became vacant again and a person has made a decent offer to buy it now, If I pay all closing cost.
The home is in good condition but I am sure will not meet FHA or VA standards. I told him it would have to be a non-convential loan.
What is the cheapest way for me to get this deal done?
There are no closing cost if you do table-top subject to deal... meaning you close when the seller deeds you the property.
Yes I know that, Iet me give a little more history,
I have a home that just became vacant again and a person has made a decent offer to buy it now, If I pay all closing cost.
The home is in good condition but I am sure will not meet FHA or VA standards. I told him it would have to be a non-convential loan.
What is the cheapest way for me to get this deal done?
If there is sufficient space between the price and what the house appraises at, rewrite the contract showing a sales price which is 3% higher.
Then you also write into the salescontract a 3% sellers contribution.
That should take care of the closing costs.
[addsig]
Hawthorn,
What is definition of seller's contribution here?
The seller is not directly providing the 3%, but is the 3% coming back to the seller at closing? (to cover the closing costs the seller has paid, I assume?)
I'll try to keep it simple.
Buyer will not or can not bring money to the table for closing costs.
Let's use some numbers as an example.
You basically agree on a price of 97K, and the house will actually appraise much higher.
Now in order to lower the amount the buyer has to bring in cash to the closing table you could write the sales contract at 100k.
The buyer will put in his loan application based on that amount. However you also write in your contract that you, the seller will give 3% (3k) towards the buyers closing costs. End result is that you receive 97k, and buyer has 3k less to bring to the closing table.
I suggest you contact a Mortgage Broker and have him explain the details as to how this is done.
It is a simple tool that you can use to make it easier to get the buyer to qualify for a loan, and it helps you to sell the house quicker.
Hope this helps.
[addsig]