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?
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]
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]
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.