Foreclosure condition?
Hi every one,
I'm new in REI. I searching my area for fourplex. today I just talk to owner of one fourPlex. He is sad that he want to sell this four Plex badly because own alot of money.
Here is condition,
Loan : $162,000
if I want to buy his 4plex I need put out $12,000 cash to pay his debt. and reinstate his loan
He said this is asumable loan everything will tranfer to my name.
My questions is,
What I should do to make sure evry thing is right?
Is this true that the loan will be under my name and his name is completely out of this 4plex?
Please guide me some Info.
This is my first investment. Could some one explain on how this work
Thanks much [ Edited by Toiyeudoi on Date 12/18/2002 ]
Quote:
On 2002-12-18 20:59, Toiyeudoi wrote:
He said this is asumable loan everything will tranfer to my name.
What is the interest rate on this loan? It may be high. If it is why put out 12k on a high rate loan.
What is the property worth?
What is the cash flow?
If the property is priced right and the cash flow looks good with 12k down you can get a your own loan at a decent rate.
TOI:
Personally, I'd Never sign my own name to ASSume anyone else's Loan!
But I'd definitely take ownership interest using a Land Trust!
EVEN if the PROPERTY is OVER FINANCED!!!
Here's Why? I wrote an Article here on TCI Titled:
"8 Reasons YOu Sould Buy Over Financed Homes?"
WANT TO READ IT?
Go To:
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&sid=129
Hope this Helps!
Derrick Ali
[addsig]
4plex right now have 2 vacant 1 rent $695.00 another rent $595.00 Monthly payment $1675.00. I don't know about rate.
maket value about $200000[ Edited by Toiyeudoi on Date 12/18/2002 ]
Hi DerrickAli,
Thanks for Idea,
Do you know where I can get the sample LAND TRUST form?