- wannabe2Member@wannabe2Join Date: 2003Post Count: 65
hoping someone can give me some advice,i know of someone who has a mortgage that they can’t manage now and wishes to sell,the house is worth 430,000 in todays market but she’s got it listed for 400,000 for a quick sale but still can’t give it away.she is really prepared to accept 370-380 just to get out but by the time she has paid everything ie real estate fees etc and credit card fees run up then she will leave with just 10,000 in her pocket as she is very highly leveraged.she just wants to sell and rent back for approx 280 per week as she loves where she lives,i have told her that i cannot afford to buy her place although i think it would be a good deal for both of us if i could find a way as we could split the difference of a further 12000 if we did’nt need a real estate agency.does anyone have any ideas re taking over a mortgage or is it even possible??is this a dog of a deal??Fast LaneMember@fast-laneJoin Date: 2004Post Count: 527
If she’s trying to lease a place back for $280 pw that she cant sell for $400k, then she’s dreaming and yes it does sound like a dog of a deal.
And if I’ve read your post correctly, then jumping into a mortgage with this person is financially irresponsible. If she’s that over-extended and cant manage her finances and repayments then steer clear, unless it’s your future wife or mother of course.
You could do better with your money. Good luck with it all, and let us know what happens…G7alexleeParticipant@alexleeJoin Date: 2004Post Count: 46
Agree with G7. Incidentally, why do you think the place is worth $430k on the current market? The seller has put it on the market and it isn’t selling at $400k, so it certainly ISN’T worth $430k. If rent of $280pw is correct, at $430k that’s a 3.3% yield. That would have been peak price and it’s certainly a lot quieter now.
Besides, I don’t think banks allow you take over mortgages without a re-assessment. That said, you CAN get your own finance and buy the place, but I’d do more research.
Biggest question: what’s the place really worth and what are you basing your assessment on?