Price Cut at 273 Berry Street
The three-story townhouse at 273 Berry Street at South 1st Street on Williamsburg’s South Side hit the market last February with a price tag of $1,129,000, which is where it was when it was an Open House Pick in March. On Monday, the asking price was reduced by 7 percent to $1,049,000. The interior has…
The three-story townhouse at 273 Berry Street at South 1st Street on Williamsburg’s South Side hit the market last February with a price tag of $1,129,000, which is where it was when it was an Open House Pick in March. On Monday, the asking price was reduced by 7 percent to $1,049,000. The interior has about as much detail as you can expect to find in this part of town. The owner’s also willing to provide financing. Further to fall or about right now? GMAP
“A Mortgage is on a Secured Asset retard! Take the house and end of story!”
Just because an debt is secured, doesn’t mean that your only right to payment comes from the security…
Ever heard of recourse vs. non-recourse? The right to sue for the deficiency — that’s the recourse.
crystal clear bklnite – thanks.
the chicken, dirty hipster,
re: seller provided financing
As an example … Seller has lived there for ever and paid off his mortgage. He’s willing to take 200K in cash take back a mortgage for 800k. At 6% he gets $4800 monthly income. It’s a much better yield than treasuries, could make for a comfortable retirement living in your 200k condo in Florida. Seller has as good an idea what it’s worth vs. the banks, and dirty hipster buyers may not have well enough documented income or good enough credit to convince cautious bank lenders to make the loan. Seller gets the deal done when otherwise it would sit on the market, or he’d have to make a more serious price cut.
got it m4l. well it seems like the owner is pretty motivated to sell.
DH, owner would have the 20% (or whatever % he wants to accept) deposit from the buyer so there’s some cash in hand but not the whole thing. Plus mortgage paymt would be higher than rent and mortgage paymt doesn’t drop (vs. rent would drop in this weak econ)
“ps what happened with the OT? (I figured somebody insulted somebody else – just being nosy as to who the protagonists/antagonists were)”
there was some “unusual” suspect saying alot of slurs and pretty raunchy stuff.
sorry – i think i reiterated some of the chicken’s points.
Sorry – I’m not really privy to how mortgages work.
So in this situation the seller holds the mortgage note (which i take to mean doesn’t receive any cash) and collects the mortgage payment from the new “owner”
So what seperates this from just renting the place out I guess is that they feel it’s overpriced and want to sell before they feel the market bottoms out?
Why would the owner want to hold the mortgage if the potential buyers got rejected by a bank?
thanks DIBS and Jessi.
Obviously it’s legal otherwise it would not be offered in print but aren’t there laws regarding who is allowed to issue a mortgage? (I would have thought a banking licence at the minimum). And why would you be willing to take on the lending risk if the buyer has been turned down by a bank (unless you think that is the only way you’ll be able to sell the place) – sure, lending standards have tightened in the last 18 months but they aren’t draconian and banks are still issuing against good credit risk.
On top of this, it would seem that the seller has to effectively have no underlying mortgage themselves.
ps what happened with the OT? (I figured somebody insulted somebody else – just being nosy as to who the protagonists/antagonists were)
THis area is absolutely beautiful. Close to the water. And everything. There is a school and a park right on this corner, but no idea how it rates.