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Discussion Starter · #1 ·
this was posted on the enidnwoksagreatsite group....it works a bit like freecycle except money changes hands with the transactions....here is the listing: (it isnt my listing--I just got it from the group)

I have a 6 bedroom, 2 BA house for sale in Lamont, detached garage, kennel, and cellar. yard completely fenced, with the back yard being privacy fence. House is approximately 2400 sq ft and detached garage is approx 1150 sq ft. Owner will carry note with $7500 down. Serious Inquiries only. Call for appt at <# removed for privacy> for appointment. Can also email with any questions.
 

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Not enough information to be certain, but there perhaps should be a warning to anyone interested in taking anyone up on such an offer. It is not illegal, to make such an offer and it is not illegal to complete the transaction, BUT it is well known in the world of buying and selling real estate, that you can make such offers, and actually look for someone who does not qualify for a loan from an formal lending institation, a high risk person who is not likely to be able to keep up with the payments. You soon foreclose on the loan, and offer it again under the same terms and conditions - each time you get the $7500 which is forfeited a failure to make loan repayments. The shorter the terms of turn around the better, in addition to any payments which were made, and you start over right where you left off. If you are lucky the "new" owners will have some work done on said property which improves it.


And if you actually find someone who never misses a single payment...you have the money to reinvest in more property.

All that just to say, be careful about some deals offered, especially if it looks for a win-win for the seller and all the risk seems to be on your side. Read the fine print, and do not sign without your attorney's approval.


Marlene
 

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RachAnn in NW Okla said:
this was posted on the enidnwoksagreatsite group....it works a bit like freecycle except money changes hands with the transactions....here is the listing: (it isnt my listing--I just got it from the group)
Lamont? Wow, have you ever been there. It's like the little town that totally died. There is a gas station and a post office and about 20 streets of houses (some occupied, some not), but the "main street" is just one empty building after another.

I always thought that if I ever won the lottery I'd go to Lamont and put in some businesses and bring it back to life. It seems like such a nice little town other than that.

Pretty good deal though, if you don't mind driving (pretty far) to work every day.

donsgal
 

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Discussion Starter · #5 ·
I am about 45 miles from Lamont....we had our 2000 sq ft house appraised last summer and it appraised at $33k....Lamont is a small place...I would even say possiblly dying as in the last 10-15 years or so they have consolidated the school with a neighboring town......I would say that this house is prob no more than 75k....

I dont know anything more than what was in the 'quoted' area ^up there^ as that was the entire email/post sent.....

Rachel
 

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I knew a man who had become wealthy doing just what Marlene outlined. He sold the same houses many times over ... said it was better than renting, as the wannabe buyers took better care of the properties than did renters, plus he got a sizeable downpayment up front.

My second husband and I bought our land on land contract ... the sellers had subdivided a large property and offered the 10-acre lots with an attractively low down payment. We paid our land off in a year or two, but the property next to us was sold at least 3 times during the time I lived there. Each time, the buyer defaulted and ownership reverted back to the seller.

Land contracts (owner financing) tend to be popular among people who can't qualify for a bank mortgage, which is a good sign they're not too stable or really can't afford the property in question.

I just sold my Michigan house on a contract ... according to the boilerplate language in the contract I used (obtained from a title insurance company) the buyer can be only 45 days delinquent in their payment before the contract becomes null and void.

However, I have known the buyers for a long time, and feel confident they'll live up to their end of the bargain.

OTOH, my ex-husband and his new fiancee just signed a land contract on a $139,000 house in suburban Detroit. I don't know what she earns, but she had no savings ... he had to put up the entire downpayment. Knowing what I know of his financial acumen, if I were a betting woman, I would guess they will default within a year. :(
 

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Discussion Starter · #7 ·
okay but what if you have excellent credit and can just get the financing????

I would worry if they refused to sell it without it being owner financed, but what if say I had the credit to go get a loan/mortgage and just bought it????

a bit off topic but when we are in Enid DH likes to cruise through the Dodge stealership and drool at a new truck or 2....we have 8 more payments on our Jeep before we even seriously consider getting something else too....as we will give up our 2nd car and keep the jeep and then get a new one.....

so anyway, I was curious, so when the salesman came out to talk, I asked him what kind of financing can someone get with a credit score of 744??? You should have seen his eyes light up!!! He said the best financing there is and here is my card....lol

we will be going to Fairview to Jensens to get a truck....they are a small-time dealership that has treated us right as far as repairs go...and one of my ex-students (he graduated) works there.

Rachel
 

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RachAnn in NW Okla said:
okay but what if you have excellent credit and can just get the financing????

I would worry if they refused to sell it without it being owner financed, but what if say I had the credit to go get a loan/mortgage and just bought it????

Rachel
Contract for Deed deals are very common around here. However, before buying such a "deal" I would have an appraisal and home inspection done. Will cost you about $600-700 for both but it is better than buying a lemon for many thousands of dollars.
 

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willow_girl said:
I knew a man who had become wealthy doing just what Marlene outlined. He sold the same houses many times over ... said it was better than renting, as the wannabe buyers took better care of the properties than did renters, plus he got a sizeable downpayment up front.

:(
Contract for Deed is a great way to handle rental properties for exactly the reasons you mentioned.
 

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RachAnn in NW Okla said:
okay but what if you have excellent credit and can just get the financing????

/QUOTE]


RachAnn - actually that was my point, that if you qualify for such financing you are likely better protected then you would be with owner financing, because lending institutions want their money and your interest back - not that they would not take your vehicle and/or land if you default - it's just in their best interest to not have their assets tied up in to much of what they accepted as collatoral for the loan.

And as I pointed out, it's not illegal, and if your you have bad credit but have learned from your passed mistakes, by all means if owner financing is the only means by which you can get you land - do so. If you are not sure of what you can afford on your annual income - pay someone else to tell you. DO NOT borrow what it is likely you will not be able to pay back. Don't count on someone else to do what is in your best interest - always know that they are rightly looking out for their own best interest first.

Hugs,
Marlene
 

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I recall recently where 20/20 did a news story on a car dealership that "carried the note" on used cars they sold. All of their cars were "junkers" with tons of miles that sold for $2000 +/-. (It's a sad story.) Virtually all of their customers were poor people with bad credit ratings.
The dealership would take their application with a $500 down payment and promise to call them back within a day or so. During this "day or so" the dealer would drive by their home, make sure they lived their, and also find where they worked.
Okay, now the dealer "approves" the loan, delivers the car, and holds the title until it's paid for. (Oh this gets so stinky.) The dealer keeps a key, and the new "owner" drives off in their car. As soon as they are 1 day late for a payment, (didja read the fine print in the sales contract?) the dealer goes and picks up the car for noncompliance with the contract, and puts the "for sale" sign back in the window. And the cycle repeats.
Some cars were sold as many as 8 to 10 times. Of course the buyers all "forfeit" the down payment.
Let's calculate this; If a car sells for 8 times with a $500 down payment, the dealer just took in $4000 for a $2000 car that he probably only paid $1200 for, and that doesn't include any payments made before the late one! Not a bad years work huh?
Now if he has a dozen cars in the works, this would suppliment his dealership sales rather well.

There sure are some scoundrels in the world aren't there?

Caveat Emptor

Di
 

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Dianol, all those poor souls got a 500$ lesson in life. I wonder if they'll learn from that lesson and read the fine print next time. I was taught by my parents early in life to never sign my name to nothing without reading every line of the contract...without someone talking to you. I see poor souls continually who fail to read the fine print. One of my second cousin's sold the land next to me for 600$/acre... found out later that they'd had the mineral rights includeds in the deed (written by the greedy {smart} lawyer, who was also buying the land)... mineral rights have paid several times what the land was worth...and they're still paying each month.
 
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