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photon · 03-27-2007, 06:26 PM

Yeah since there are so many people looking for forclosures, they tend to go to the people they know will buy them; I know a few people who are big into forclosures but they can buy many houses and do it fast, and they spent a lot of time getting in with the right people.

Assumables can be tough in this kind of market as well; as Sample said you have to have the cash to mortgage money.. and since values have been rocketing up but everyone's mortgage is the same, last year's $180,000 property with a $162,000 mortgage ($18,000 cash to mortgage) is now $280,000 with a $118,000 cash to mortgage, meaning you need $118,000 in cash to assume.

There are still some options though. Some people will do a "rent to own" or similar type situation, where they operate as a bank for you, give you a mortgage but provide the down payment for you in exchange for partial ownership. You make all the payments, and after five years the property gets refinanced, the other people get their money back plus a profit (say 50% of the increase in value over that 5 years, you get the other 50%), and you now own the property outright. There's a few different ways to structure it depending on what the needs are.

Of course you don't get the full benifit of owning the property 100% yourself for however many years, but it's far better than not owning at all.

03-27-2007, 06:26 PM	#5
photon The new goggles also do nothing. Join Date: Oct 2001 Location: Calgary Exp:	Yeah since there are so many people looking for forclosures, they tend to go to the people they know will buy them; I know a few people who are big into forclosures but they can buy many houses and do it fast, and they spent a lot of time getting in with the right people. Assumables can be tough in this kind of market as well; as Sample said you have to have the cash to mortgage money.. and since values have been rocketing up but everyone's mortgage is the same, last year's $180,000 property with a $162,000 mortgage ($18,000 cash to mortgage) is now $280,000 with a $118,000 cash to mortgage, meaning you need $118,000 in cash to assume. There are still some options though. Some people will do a "rent to own" or similar type situation, where they operate as a bank for you, give you a mortgage but provide the down payment for you in exchange for partial ownership. You make all the payments, and after five years the property gets refinanced, the other people get their money back plus a profit (say 50% of the increase in value over that 5 years, you get the other 50%), and you now own the property outright. There's a few different ways to structure it depending on what the needs are. Of course you don't get the full benifit of owning the property 100% yourself for however many years, but it's far better than not owning at all. __________________ Uncertainty is an uncomfortable position. But certainty is an absurd one.