OfflineIm a wholesaler, this guys loan bal is 199K the the FMV is 207K. I gave a verbal offer of 57K.He said his is going to take out a loan and finish paying the rest of the bal. Here is my question CAN HE DO THAT?The loan bals is on him..RIGHT?
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You must have a clear title in order to sell the property. The seller's loan has to be paid one way or the other at closing in order for the title to transfer to the new buyer. Your seller can take out a loan as long as he does not use the subject property as collateral. This sounds like a waste of time. Move on to the next deal if your exit strategy is to wholesale.
You could do a subject to or lease option if you have more than one strategy. Does your seller need to cash out. Are his payments current?
A final question. What id you base your offer of $57,000 on? Just throwing out low ball numbers?
Mentoring/Team Building
Michael Mangham
MD Home Acquisitions LLC
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No, not a low ball number it needed new roof, someone stole the heating unit, been vacant for 6 mouths. windows broke ect...