Agent

Seller financing jeopardized by short-term real estate loan

Two years not practical for purchase
Published on Feb 10, 2005

DEAR BOB: I currently rent in a condo complex. My neighbor, age 83, in great health both physically and mentally, agreed to sell me her condo for fair market value. We have a real estate agent friend who will do the paperwork for $3,000, which will save my neighbor about $18,000 in sales commissions. She wants to use her sales proceeds to invest in the stock market at around 4 percent but with some risk. I offered to pay her 5 percent interest for two years if she will finance my purchase. I want to help her, but I also want to help myself. With a seller finance, I will avoid the hassles of obtaining a conventional mortgage, paying points, and all the loan fees. My neighbor has agreed to do this. What is your opinion? – David G. DEAR DAVID: You are very wise to seek seller financing for your condo purchase. However, two years is a very short loan term. Purchase Bob Bruss reports online. Try to get at least five years or longer, even if you have to offer 5.5 percent or 6 perce...

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