Please advice with this offer ... is it a good deal?

I am trying to buy a condo that is already schedule for and auction on the 14 of May. THis is my offer: please tell me what you think?

The condo is worth about 49k.
The owner's still owes about 30k.
Amount due with attorney's fee is 8k

Would it be a good deal to pay the mortgage completely and the fees and give the owner about 2k?? the total would came up to 40k

Am I missing something here? Or is this ok? I believe I also have to came up with closing costs right?

I have been approved for loan of 200k that I can use pretty much how ever I want. Please advise.
Thanks so much in advance.

Blanquitaquinull

Comments(1)

  • BAMZ23rd April, 2003

    Hi Blanquitaqui,

    If you can purchase the property as is and immediately have about 20% equity in it, then that sounds like a nice a transaction.

    I would double check the title work to make sure that there are no other leins on the title, and also get firm payoff amounts (as of a certain date) and re taxes that are due (remember they are paid in arrears.

    If the homeowner hasn't asked you for $2000 already, you may consider offering them $500 or so. This way if your comps are off by a slight amount that you will still do well on the purchase. Also it is in the owners best interest to sell you the house now rather than having a Completed FORECLOSURE on thier credit report.

    Best of Success!

    BAMZ

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