heres the question.were getting it for 95,000 but it has an appraisal value of 139,900.at closing do we get the cash for the amount over price we pay or do we just get what were paying for the house.the house is going into foreclosure in next couple months.
2007-10-26 10:24:41 · 5 answers · asked by mamanana9 4 in Business & Finance ➔ Renting & Real Estate
the house is worth alot more than were paying,its a foreclosure and in arkansas when you buy forclosures and tax property,no matter what the value of house is worth,you only pay what is owed on it.for example recently a friend bought a house in great shape appraised and worth almost 300 grand,but they only paid 94 grand for it because of the foreclosure.and yes it was in excellent shape.
2007-10-26 14:30:56 · update #1
yes we would gladly pay the 139 price if they asked.we just got lucky and found it on ahuge discount.
2007-10-27 05:03:30 · update #2
if you're buying it for less that it's worth than you automatically have equity in your home when you become the owner, which means you will profit (make $$) when you sell you house since you will probably end up selling it for more than you paid for it.
2007-10-26 10:33:15 · answer #1 · answered by dellusion 2 · 0⤊ 0⤋
You are buying the house so you are going to pay $95,000 plus closing costs. Now you can turn around and get a "home equity loan" on the difference between what you owe on the house say $95,000 and the appraised value or $139,900. This is a separate transaction but the bank giving you the mortgage loan will often do home equity loans as well, ask them.
2007-10-26 17:35:24 · answer #2 · answered by Space493 3 · 0⤊ 0⤋
If you are buying it for 95K, and that is the best offer, that is what the market at this time says it is worth. The former market price might of been 139.9K but now it is only worth 95K With the sinking market your home is now appraised at 95K, the amount the market will allow. The houses in the neighborhood are now also appraised at a lower rate, since appraisals are based on an average of comparable selling prices in an area. In fact dependent upon the area would almost bet that appraised worth will go down in the next year.
2007-10-26 20:55:36 · answer #3 · answered by Pengy 7 · 0⤊ 0⤋
None of the answers above are true. Whatever you buy it for is what the market value will be regardless of the appraisal. No lender is going to give you an equity loan immediately after you purchase a property. It's just not going to happen. When you buy the house for 95K, all the other houses like it in the area are going to be compared to yours at a value of 95K, that includes yours. Why would anyone lend you 139k on a house that you yourself would not pay 139k for?
People keep confusing appraisal with market value, they are not the same.
2007-10-26 17:48:10 · answer #4 · answered by Anonymous · 1⤊ 0⤋
If you qualify you can get some of the money as an EQUITY Loan but you have to pay it back, But that is good equity that you will already have in your home incase you want to fix it up in the future or an emergency comes up in which you need to borrow the money. But don't do this unless you plan to live in your house along time and can afford the extra payment.
Generally speaking unless you take a loan on your equity you do not get that money at closing. It is your EQUITY and is quite a good thing to have if you live there 30 years and sell it for 150,000 you will will get the entire 150,000 for your retirement when you sell it and down size-minus any taxes due if any..
IF you pay it down to say 65000 and sell it at 150,000 10 years from now you will have the difference to put down as a down payment on your new 200,000 home -50,000 down and only will finance the 150,000 for example.
2007-10-26 17:37:27 · answer #5 · answered by Sherri S 3 · 0⤊ 0⤋