Having trouble thinking this through... thoughts?

cantjustcant

Here's hoping he lets you rent for 9 months to get an idea on how you like it! Best of luck to you!

odusgolp

Here's hoping he lets you rent for 9 months to get an idea on how you like it! Best of luck to you!

Thank you!

Kimbie500

I would not buy land contract. If something happens with the title holder and someone sues him, they can take the house you have been buying from him and you are out the money you've paid. Rent until your situation settles and you can buy. Borrow the book "The Total Money Makeover" by Dave Ramsey from the library and follow his plan in the meantime. Then when you are in a position to buy, you will be in a financial postion to do so. Best of luck.

odusgolp

Because a bank is safer?

Sorry, had to make myself laugh at this *LOL*

Kimbie500

The 100% down method works, too.

There's a whole philosophical discussion we could have about the recent mortgage crisis but I'm just not gonna. You asked for advice. I didn't see anything similar to what I said. I offered what I meant to be helpful advice. You will do what you will do. Best of luck.

odusgolp

The 100% down method works, too.

There's a whole philosophical discussion we could have about the recent mortgage crisis but I'm just not gonna. You asked for advice. I didn't see anything similar to what I said. I offered what I meant to be helpful advice. You will do what you will do. Best of luck.

Relax, I absolutely do value these opinions. I was making a funny based on the banking crisis and today's BOA story (http://www.freep.com/article/20110913/BUSINESS07/109130362/Bank-America-tries-save-itself-by-slashing-30-000-jobs). It made me giggle thinking about the state of banking.

I'm an accountant... philosophically discuss with me all you'd like.

MisterDubs303

if you really like the house, rent it for a year with the option to land contract at the end of that period. In the year you can find anything wrong with the house that you wouldn't discover before! Plus you can get any repairs that need to be done on the landlord's dime! That is what we are doing in our house right now.

That is what I'm going to propose! Rent for 9 mos (he can then list in summer months) with a revisit of the land contract then. Problem is, he doesn't want to be a landlord... which I get... But I can at least ask!

I support this one. In addition to another comment above about the risks of something going on with the current owner, anything that goes wrong with you (heaven forbid), you would lose any of the equity you would be building with the current owner. On the other hand, if the amount is the same as what you would be paying in rent, then it might be a moot point.

Kimbie500

Relax, I absolutely do value these opinions. I was making a funny based on the banking crisis and today's BOA story (http://www.freep.com/article/20110913/BUSINESS07/109130362/Bank-America-tries-save-itself-by-slashing-30-000-jobs). It made me giggle thinking about the state of banking.

I'm an accountant... philosophically discuss with me all you'd like.

Oh my goodness. If I were going to take out a mortgage, I certainly wouldn't have BOA on my list of possible lenders, even before this "increase investor confidence by firing people" nonsense.

Our mortgage is held by a small local bank that does not sell its loans. We get great customer service and competitive rates from an institution that doesn't overleverage or loan money to people that can't afford to repay it. There are good banks out there...

SueInAz

Relax, I absolutely do value these opinions. I was making a funny based on the banking crisis and today's BOA story (http://www.freep.com/article/20110913/BUSINESS07/109130362/Bank-America-tries-save-itself-by-slashing-30-000-jobs). It made me giggle thinking about the state of banking.

I'm an accountant... philosophically discuss with me all you'd like.

Oh my goodness. If I were going to take out a mortgage, I certainly wouldn't have BOA on my list of possible lenders, even before this "increase investor confidence by firing people" nonsense.

Our mortgage is held by a small local bank that does not sell its loans. We get great customer service and competitive rates from an institution that doesn't overleverage or loan money to people that can't afford to repay it. There are good banks out there...

My mortgage got bought out by BofA a year or so ago. :grumble: The only upside is that I already banked with them so am now earning interest on my checking account and get free checks. .5% interest and free checks I never use. Whoo hoo!

cmriverside

As an ex-Realtor and homeowner, I'd say give him a low offer. Don't overpay in your market just because you like this house. There are many houses you will like and it's a buyer's market.

I know you said you had a hard time finding a seller that would agree to your terms, but he really hasn't yet. You set the price. Not the seller.

odusgolp

As an ex-Realtor and homeowner, I'd say give him a low offer. Don't overpay in your market just because you like this house. There are many houses you will like and it's a buyer's market.

I know you said you had a hard time finding a seller that would agree to your terms, but he really hasn't yet. You set the price. Not the seller.

Here's some considerations... 1. He & his wife, are blessed to have no mortgage on either this property in question, nor their home. They are quite financially sound.

2. The amount I'd pay in rent is the same as I'd pay with the "land contract" or mortgage. However, I would get the tax benefits (as well as any repairs/maintenance) with the latter.

3. If he were to bankrupt (which is honestly EXTREMELY unlikely in the next 18 months), I'd simply press on. I'm not losing really anything as rent would be the same if not more at any place available for a rental.

4. Homes are actually moving relatively well in my area (near Milwaukee, WI). It's definitely still a buyer's market, but you can't low ball quite as much as you could a year ago... That being said, I'm meeting w/ my realtor later (who is simply helping me for free at this point) to get a totally outside opinion on the actual value of the house. I honestly won't pay more than it's worth. That's just... crazy, even if I pay a higher rent somewhere else. I don't want the house THAT bad where I'd be completely dumb. Just slightly dumb

5. He absolutely hasn't agreed to my terms. I haven't put in an official offer - first I want the appraisal and for my carpenter and realtor to look at it with me. Then offer contingent upon inspection, blah blah. We have verbally agreed on a price range of $4,000. It's where we land in that price range... if at all.

6. When the time does come when I can obtain bank financing, I am blessed to work for a "local" private bank that would keep the loan in-house. I'm not sure what will be in my best interested after 18 months, but I'll have to research that all at the time...

I hate the stress of moving, if you can't tell. So thank you for helping me think it all through... If you see holes in my thinking, or other things to consider, please... have at it.

cmriverside

If the house is for sale, you should make your best offer now, all contingent on the inspection. I assume you have an appriaser in the wings to do this appraisal before a P & S agreement? Or is the seller getting an appraisal for his own purposes? Because usually someone has to pay for an appraisal, but if you work for an S & L then maybe you have connections.

Once you move it, even with an inspection done previous, you are going to find stuff wrong. If you think you can live with that without balking, and if you and the seller have an agreement on any repairs that come up after the Lease Option takes affect (you are talking LO, right? Because if you're not, you could explore that option.)

If you are purchasing outright and the seller is carrying the contract, whole nuther ball game. If you are puchasing outright and you plan on your employer carrying the loan, which is what it sounds like, then make the low offer anyway. He can counter your offer. You can go back and forth on the fine points of the agreement as much as you both want.

I guess I'm not clear as to which option (financing) you are seriously thinking of, because you've described three different scenarios in part.

cmriverside

Once you move it, even with an inspection done previous

Once you move IN