I know I'll sound like an idiot, but humor me

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Posted by Lisa in Tulsa on January 06, 2003 at 22:30:38:

Hi, I stumbled across this site, and have enjoyed reading all the posts. I must say, it's a rare thing to come across a discussion forum on the web that doesn't have a large share of rude or spam posters. I don't even know if my situation belongs here, but I thought I'd try. Any insight into what I might do would be appreciated.

I have a great house, you can see it at www.fsboonline.com/47758. I purchased it almost exactly a year ago (put down 21K on it, wound up with an 83K mortgage). When I purchased it, it appraised on a drive by appraisal at 106 and some change. If it had a full appraisal, I'm quite confident it would appraise out much higher...as you can see from the photos on the above website. I've had extreme financial difficulties this past year, I've always been in office equipment sales and done quite well, but this year has been an absolute kick in the pants. I decided to sell my home, to try to get as much of my equity out of it as I could, so I could have rent paid for a couple of years or more while I go back to nursing school.

So here's the problem. I have a 6 month prepayment penalty (winds up being about 4200) if I sell it prior to 1/04. Here's what I've been thinking: If I could sell it as "owner financed" for one year, I could eliminate the prepayment penalty and make an additional 4200 at the end of the year. So my questions are this:

Can I do this when I have a mortgage under my name? I know in the mortgage, I agreed to occupy the home.

Would I put a one year balloon provision on it, meaning, giving the purchasers one year to get financing? And if they can't, would I be able to keep the down payment/equity they paid in?

I'm a fairly intelligent person, and I know that people do deals like this, but I'm just afraid I'd screw it up somehow.

Any insight would be appreciated.

Thanks so much,

Lisa

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