Is anyone here familiar with basic real estate language?

[MrsBugi]

If so, could you translate this into "layman's terms" for me?

$7500 - I HAVE A HOUSE WITH EQUITY, I WILL SIGN IT OVER FOR 75K!!

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Reply to: hous-160450328@craigslist.org
Date: 2006-05-13, 10:49AM PDT


I HAVE A BRAND NEW 4BDRM AND 2 BTHRM HOME IN RIVERSIDE. IT IS A MANUFACTURED HOME WITH A PRIVATE LENDER. I AM DEFAULT 26K. IT IS RECENTLY APPRAISED AT 400K. I OWE 320K. I WANT OUT. I WILL SIGN OVER THE HOUSE TO YOU FOR 10K CASH. FIRST ONE TO COME UP WITH THE $7,500 OR ANYTHING CLOSE, GETS IT.

Is he saying that he cannot afford the $320k for his house, and that he will let someone else have it (and take over the payments) by paying him $7,500 or so?

 

[Amplifier]

It's called a subject to purchase/loan assumption. He's asking for 320k+26k+7.5k+closing costs+ whatever else he owes on the property. If the property is only worth 400k the deal doesn't have acceptable margins.

A reduction on the loan is possible but I doubt you'd be pursuing that route.

edit: In layman's terms he wants you to make up all his backed payments, give him 7.5k, pay all closing and transfer costs, and assume the mortgage payments on the house.

 

[MrsBugi]

Originally posted by: Amplifier
It's called a subject to purchase/loan assumption. He's asking for 320k+26k+7.5k+closing costs+ whatever else he owes on the property. If the property is only worth 400k the deal doesn't have acceptable margins.

A reduction on the loan is possible but I doubt you'd be pursuing that route.

edit: In layman's terms he wants you to make up all his backed payments, give him 7.5k, pay all closing and transfer costs, and assume the mortgage payments on the house.

possible but I doubt you'd be pursuing that route.[/quote]

Good grief I need to educate myself on these terms, especially since we're hoping to purchase a home within 5 years.

Thank you, Amplifier - but is there any way you could simplify your explanation even more? From what I understand, he's asking for less than what the property is worth because he can't afford to continue making his mortgage payments? Would this be a good/bad deal to swoop in on (not that we are in a position to do so right now, but for future reference).

EDIT re: your edit: Ah, I see. So it doesn't appear to be such a great deal after all - anyone taking him up on this would essentially be bailing him out. Unless it was an amazing house you were in love with, I would imagine it would be a bad move to pursue?

Thank you very much for the simplified simpliciation.

 

[chuckywang]

acceptable margins?

 

[Amplifier]

Originally posted by: chuckywang
acceptable margins?

Means that after all is said and done, the property would not have much equity in it. And if the apprasial he used was embellished, the equity could be negative.