Thread: Sell at a loss?

Be creative, finance the 20%, do something in order to minimize loss, if any. I think summer 2009 is bottom line nationwide. Here, the rebound begins already, it might not be the case everywhere though...

Originally Posted by Codythebest

Be creative, finance the 20%, do something in order to minimize loss, if any. I think summer 2009 is bottom line nationwide. Here, the rebound begins already, it might not be the case everywhere though...

Thanks for your reply, Cody.

Actually we tried to owner finance the balance with him, but he was transferred to our area from OKC, and has a house there he can't sell. Also, he said the bank won't loan for any longer than 15 yrs., which makes his payment really high for our land. So I think I believe him when he says he'll be paying the maximum that he can pay.

Do you have a mortgage on that property?

Yes: Do a wrap-around private financing with him. He pays you every month with money you'll pay the bank with, until better days...Quit claim the deed (or better, keep it until paid off) and keep the insurance in your name. I don't believe you'll get any "due on sale clause" these days though....

No: Finance the whole thing for him...

When the bank says they will only finance 80% they want the other 20% to come from the buyer. No matter how low you go on your price the bank will only lend 80% of that price to this buyer and they will expect the buyer to produce the balance.

If your buyer doesn't have 20% then you do not have a deal. It sounds like your buyer is not very strong if they can only get 80% financing.

Originally Posted by Greg

If your buyer doesn't have 20% then you do not have a deal. It sounds like your buyer is not very strong if they can only get 80% financing.

Not sure if there is such thing as strongness anymore.
My last buyer has a 6 digits salary and put 35% down on a $115K investment property. Since he's buying an investment property every month, his credit score dropped to 720. Result: DENIED!!
Banks are keeping their $700 billions bail out for themselves, just in case.
Go Owner Financing...

No chance of us owner-financing the main part of the loan; we both have our own plans for the money. The land's been in our family for over 60 years, but we're too old to keep and work the place or wait for them to pay us out. And no mortgage on the land, houses and barn.

We just need to sell. There's a real estate co. that wants to list it, but they were even telling us to list it below price.

We have a buyer for 80% of the appraisal; but land, etc. around there is listed higher; one our our problems is we don't know how long those have been on the market.

Also, everyone around there knows everyone else, so we don't know if we're even getting the straight scoop.

Wish we knew!

lower your payments with a loan modification. People are saving their homes with this. You can research loss mitigation too to learn more.