| Another way to negotiate a "no money down" deal | | | | send some threatening letters and play hard ball a |
| is with a seller who has no equity. The property is | | | | little bit with you. |
| worth $130,000 and this time the seller owes | | | | In the end they're probably not going to do very |
| $100,000 and he wants $100,000 so no equity above | | | | much and there is not much they can do. They could |
| what he owes. | | | | foreclose on the house, but what bank right now |
| Assume the Mortgage | | | | wants to foreclose on a house that the payments |
| In this scenario essentially you would go up and you | | | | are being made? Already they have so many |
| would offer to assume the existing mortgage. You | | | | foreclosures they don't know what to do. They are |
| would say, "Mr. Smith, I will take over your mortgage. | | | | not going to foreclose on a house where the |
| I will make the payments going forward. You would | | | | payments are getting made. |
| deed the house to me and I will make the mortgage | | | | That is the third way of creating an offer on a house |
| payments - but I will not pay off the mortgage." | | | | that essentially has no equity. You take over the |
| Sellers will do this all the time, again if they're properly | | | | payments. Did you put any money out of your |
| motivated. If they're not motivated and they're | | | | pocket? None. No money down assuming the house |
| thinking about selling six months down the road | | | | is accurate and it's worth $130,000 and you've |
| they're not going to entertain these types of no | | | | created $30,000 of equity for yourself. |
| equity offers. You've got to get the right sellers. | | | | You did not have to go to a bank and apply for a |
| You could take over that mortgage, have the house | | | | loan. You did not have to put your personal credit at |
| deeded over to you, and you would then basically | | | | stake. You did not have to wait two or three |
| own the property and you would continue to make | | | | months for the mortgage company to close your |
| the mortgage payment. You would not assume the | | | | loan. |
| mortgage; you would just make the payments. The | | | | Again, these types of offers are not going to be in |
| mortgage remains in the seller's name. | | | | the MLS. That's why I really preach and teach that |
| A Few Things to Be Aware Of | | | | ultimately when you become more advanced in real |
| At that point a couple of things might happen down | | | | estate you've got to go out and meet with sellers, |
| the road. You might eventually sell the property and | | | | interact with them and develop rapport and make |
| you'd pay off the mortgage. The mortgage company | | | | offers yourself. You can't do it through realtors. You |
| may get wind that you've taken it over through | | | | can't do it through computer websites. All these |
| whatever mechanism and they're probably going to | | | | things are not where the deals are. |