Seller Financing Question-Help!

Okay. Can someone tell me the best way to do this. A Lady is in the process of relocating out of state. She owes three years of back taxes (approximately $8100).

The house was appraised at $240,000 and she owes about $170,000. She is willing to sell it for what she owes on it (in other words, Seller Finance it).

Any Recommendations of the best way to go about it?

Comments(3)

  • michaeltrotter12th May, 2005

    You say she tried to sell it for a year? What price did she have it on the market for and when was the appraisal done?

    If you are uncertain what to do and want a quick turnover, get it under contract and then assign it to another investor.
    [addsig]

  • JohnMichael12th May, 2005

    My first concern with this deal is you are basing the value on appraised value and this could place you in a danger zone if you are planning to flip this property - I would first pull 3 or 4 sold comparables in likeness and location of the subject property preferably no more than 3 or 4 months old. I would also have a realtor pull up the MLS history on the subject property based upon its address to review any listing history.

    Trying to sell the property for a year and no movement does strike a big concern for me. You need much more details on this issue.

    The next important factor is the back taxes - be sure to check the status of this to determine if the city/county is still in control or have they been sold off to an investor.
    [addsig]

  • itisha12th May, 2005

    Sorry, I forgot to answer a couple of your questions.

    I do not know what she originally had it on the market for but I know she reduced it to $199,000, but she owes $170,000. Comparables are $300,000. It was appraised around November.

    I think a big problem is that people cannot get a mortgage. The realtor probably did not do a real good job of advertising because his sign would always be dangling in the wind like he did not take much pride in his work.

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