I have a house and it has an 80/20 mortgage.?

Question

We bought it 10 plus months ago. Since than we found that it leaked into the bathroom. We found estimates to repair around 1000.00 and to replace roof 3600.00. There is also, the bathroom ceiling. The floors need resanding and repair (original hardwood). House was built in 1942. Upgrades are needed all over. We want to sell and leave the area. However, finding someone to purchase with a 80/20. Total owed is $120,0.00 1st and 30,000.00 on the 2nd. Being held by the previous owner. We would like to get at least $5,000.00 to move on. What are the options? We are open to any suggestions. Please.

Answer 1

This is a common problem with first time home buyers. They don't know what they are getting themselves in for. They don't even know the potential problems to look for. Did you have a home inspection done prior to purchase? Were you aware of these problems before you purchased the house? Did you get a disclosure form from the previous owners?

If you did these the inspection, and the previous owner gave you a disclosure that said everything was fine, you would still have to prove that the conditions existed prior to the purchase date.

Your best bet is to fix the problems and live with your decisions. If you can't afford to do that, cut your losses and sell the property as is.

Answer 2

You probably want to rephrase this to get better answers. It's not really clear what you are asking from your question. You have an 80/20, so what? The main thing is that you owe 150k on this property, and want to get 5k clear out of a sale, so this means you need to get about 170k to net 155k, assuming a 7% commission.

Now the question is, can you get 170k for your house without the repairs, and the other question is that by putting in the $4600 to make the repairs, can you increase the value by more than $4600?

Or put another way, I'm not clear why your focus is on trying to find someone who can "assume" your 80/20 financing arrangement, but maybe I'm just completely missing something here.

P.S.

Here is something you might try, assuming that your problem is that the house won't bring what's owed on it, either before or after making improvements.

If you could find someone who is at least willing to buy it at some loss to you that's acceptable, you might be able to talk the lender who is holding the 30k into taking as much as you can give out of the sale proceeds, and then rewriting the debt for the outstanding balance, possibly backed by some other collateral you may have available.

The person holding the 30k, which I'm assuming is in a secondary position on the loan, is going to get hosed if you end up having to walk away from the house and it goes into foreclosure, so this lender certainly has an incentive to work with you.

Good luck again.

Answer 3

Your 80/20 is irrelvant. The total amoutn owed is what matters.

You owe $150K. Closing costs are up to 10% when you include realtor fees, so you'd need to sell at a minimum of 165K to walk away with a few bucks at all. If your house isn't worth that then you can't sell yet. You could try a For Sale By owner if you think you can get maybe $160 out of it and you'd walk away with the $5K or so you want.

Answer 4

Check on your agreement contract with the previous owner that sold you that house. If they listed that place in good shape and only showed you the little 1942 quirks of the house... but there was actually BIG ONES, you have a valid lawsuit on your hands.

But first, I would talk with the Department of Housing Authorities, for suggestions in getting back your money. They can find you a suitable lawyer to deal with this dilemma. Houses like the one you purchased should be "condemned".

In the future, please do not buy a house that needs a lot of refurbishing. The owners who sell you these Victorian homes should have it renovated first. Don't sign on the dotted line until you check every detail with the house.

Answer 5

fix the house, put on market. That's all you can do. You are more than likely facing a loss.

Never buy a house without a downpayment again. Rent if you don't have the cash flow to make repairs.

Oh, and the people that tell you to get a realtor are nuts. You pay the realtors, and if you are already maxed on LTV, plus you have decreased value due to the needed repairs, there is no way you will get the cash to pay the 8% realtor fees, plus the cost of repairs.

Answer 6

Now you recognize why you could have paid own loan insurance. The holder of the 1st own loan can decrease a deal yet that would not recommend the 2nd own loan holder has to lend a hand. i'm assuming that the 2nd own loan became no longer happy and the customer of the valuables offered it with the lien intact. you will probable could fulfill their declare. you could touch an attorney and get some good solutions from somebody who's conscious the regulation and your subject. a good attorney is properly well worth the money.

Answer 7

CONTACT AN ATTORNEY! It depends on the state that you live in, but there should be something like a lemon clause, that will hold the old owner of the house reliable for the repairs or just let you out of your contract. The hard part would be finding if they knew or not, if so, other repair receipts notices would be good evidence.

Answer 8

You have many options depending on the specifics. Contact me and I may be able to make a deal with you.

Answer 9

Get a Realtor, and put it in the market 'as is" you might get lucky and get that 5,000 you want.

Answer 10

good luke