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Posted by: Not nuts! :-) ( )
Date: May 03, 2011 04:04PM
OT - Went property hunting, found a nice lot, but....

but... the guy who owns it is in up to his eyeballs in loans. The current value of it is 40% of the asking price. The tax-appraised value is even less than that.

He purchased it in 2007, the height of the housing market for $220,000. Tax-appraised value is $78,000. Gasp!

Our offer was $85,000.00. He said, "That isn't anywhere close to what it is worth." He has $170,000 in a loan. Someone told him that the property was worth the $200,000. Um... no, not with a low-income apartment housing project that is under consideration and expected to be built behind the property by the Housing Authority.

What I found interesting is that he is expecting us to pay for the future potential value (or what he hopes it will be) of a piece of property. He is nuts!

I am not nuts! My offer of $85,000 is the max I am willing to offer.

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Posted by: matt ( )
Date: May 03, 2011 04:06PM
Re: OT - Went property hunting, found a nice lot, but....

>offer was $85,000.00. He said, "That isn't anywhere close to what it is worth." He has $170,000 in a loan. Someone told him that the property was worth the $200,000. Um... no, not with a low-income apartment housing project that is under consideration and expected to be built behind the property by the Housing Authority.

Hmmmm. He doesn't need a house sale, he needs bankruptcy, poor chap.

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Posted by: Not nuts! :-) ( )
Date: May 03, 2011 04:10PM
He also has another property that he paid $220,000 for with the same amount of mortgage loan remaining.

He has additional properties that he has deeded for $1.00 to his business.

I have a feeling that he will be going through bankruptcy shortly.

He is expecting people to pay for his mistakes. We are not willing to do that.

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Posted by: my2cents ( )
Date: May 03, 2011 04:13PM
He probably won't accept your offer because

He would need to have another $85K+ in cash to pay off the balance of the loan in order to close.

Maybe he doesn't realize it, but this is the definition of being upside down in a loan.

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Posted by: Not nuts! :-) ( )
Date: May 03, 2011 04:15PM
Very true, and his bank won't release the property to a new owner until the mortgage is paid in full. (n/t)


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Posted by: jerry64 ( )
Date: May 03, 2011 04:15PM
Re: OT - Went property hunting, found a nice lot, but....

How could a property next to a low-income project be a "nice lot"? I'd keep looking.

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Posted by: Not nuts! :-) ( )
Date: May 03, 2011 04:20PM
Tall fences make great neighbors. The lot is in a business section of town. The people in

the housing development would be potential employees.

But, yes, I am looking for another property. That one isn't going to work out, obviously.

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Posted by: summer ( )
Date: May 03, 2011 07:01PM
A property is worth what someone is willing to pay for it.

...and along with that, the amount of money that a bank is willing to loan to the buyer.

Luck to him with that.

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Posted by: Sandie ( )
Date: May 03, 2011 09:22PM
Besides his promissory note, I'm trying to think of just what collateral he wagered for the bank to grant him the loan he received

on property worth 40% of the actual value. Little wonder the US economy is going/went south especially with banks granting large loans on less-valued properties.

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Posted by: Not nuts! :-) is Sandie ( )
Date: May 03, 2011 09:25PM
I would like to see him pay property taxes at a rate based on the $220,000 he believes the property is worth

rather than the tax rate for the $78,000. That would not be a pretty amount.

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