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From: suze@terak.UUCP (Suzanne Barnett)
Newsgroups: net.invest,net.consumers
Subject: Re: Re: Re: "No Money Down" (Other People's Money) Scam
Message-ID: <990@terak.UUCP>
Date: Thu, 16-Jan-86 12:14:16 EST
Article-I.D.: terak.990
Posted: Thu Jan 16 12:14:16 1986
Date-Received: Mon, 20-Jan-86 05:26:50 EST
References: <164@bubba.UUCP> <757@hou2g.UUCP> <131@molihp.UUCP>
Organization: Calcomp Display Products Division, Scottsdale, AZ, USA
Lines: 55
Xref: watmath net.invest:1045 net.consumers:3927

> In article <757@hou2g.UUCP> scott@hou2g.UUCP (The Brennan Monster) writes:
> >I guess), but could someone please enlighten me as
> >to WHY someone with a $200,000 house would accept
> >$150,000 for it?  Even if paid in cash?
> >
> >			Scott J. Berry
> >			ihnp4!hou2g!scott
> 
> And allong those same lines, Doesn't everyone who own's a house and 
> sells it recieve the equivelent of cash anyway ?  I mean, If I want
> to buy a house, I get a loan from the bank to buy the house and buy
> it completely.  The bank now really own's the house until I can come
> up with enough money to give the bank for the house (interest + cost).
> So the original owner gets completely paid, and is no longer in the
> picture; or at least after paying off his debts.
> 
> IE.  There doesn't seem to be any advantage in selling the house to 
>      the person who *states* he will pay cash, when that is the condition
>      of the sale anyway - unless he was trying to sell it through a
>      broker of some sort, and needs money NOW.
> 
> 		
> 			I would apreciate flaws in this thinking
> 			to be pointed out, if any.
> 
> 				-- Martin the Magician.

Well, if the house is being bought without a loan, the seller
won't have any points to pay. Depending on the current
conditions, this could be a very large or very small savings.

However, points are not always required on loans (usually
those with large percentages down), and unless the loan is VA,
it's a negotiable item as to who pays whatever points are
required by the lender.

If the house is NOT sold through a real estate agent, a
commission is saved. The commission is usually a percentage of
the sales price.

There are various and sundry fees required in selling a home,
such as title insurance, prepaids, filing/recording fees etc.
The deal could have been that the buyer paid all of this,
which is not listed as a paart of the sales price.

But even in the best view of the buyer, I can't see that this
could possibly amount to $50,000 saved. Unless the home was
overpriced, or the seller was afraid of losing it
through foreclosure it doesn't make sense to me either.
-- 
Suzanne Barnett-Scott
uucp:	 ...{decvax,ihnp4,noao,savax,seismo}!terak!suze
CalComp/Sanders Display Products Division
14151 N 76th Street, Scottsdale, AZ 85260
(602) 998-4800