- Joined
- Sep 14, 2007
- Messages
- 40
Here`s an interesting situation that I`m trying to figure out...
I have a seller who is willing to finance the sale of his townhouse to me. It`s currently rented out to some tenants but he just wants out (tired landlord). Rented for $1300/month and cost of mortgage, insurance, taxes, condo fees is $1250.
Value is $340,000
Seller owes $340,000
He`s willing to sell to me for $320,000 and let me just take over his mortgage payments ($900 monthly) using an Agreement For Sale. But he doesn`t want me to pay him out in full until his mortgage paydown brings the loan balance down to $320K (otherwise he`ll owe the bank money out of his own pocket). We expect this will take around 3 years.
Any suggestions on how to stucture this? He`d like some security that I won`t pay him out too early. Perhaps a pre-payout penalty equal to the difference between $320K and his loan balance at time of payout?
Thanks in advance,
Gord
I have a seller who is willing to finance the sale of his townhouse to me. It`s currently rented out to some tenants but he just wants out (tired landlord). Rented for $1300/month and cost of mortgage, insurance, taxes, condo fees is $1250.
Value is $340,000
Seller owes $340,000
He`s willing to sell to me for $320,000 and let me just take over his mortgage payments ($900 monthly) using an Agreement For Sale. But he doesn`t want me to pay him out in full until his mortgage paydown brings the loan balance down to $320K (otherwise he`ll owe the bank money out of his own pocket). We expect this will take around 3 years.
Any suggestions on how to stucture this? He`d like some security that I won`t pay him out too early. Perhaps a pre-payout penalty equal to the difference between $320K and his loan balance at time of payout?
Thanks in advance,
Gord