Guy's, I'm sorry this is my first deal. I posted it here because I need your help before I send it to my landlord who is willing to sell the house to me at the price stated below. He now resides in UK. Please comment if any of my points below doesn't make sense to you. # 3 especially I dont know 50% is okay or I go for 100% credit.
Mr X its one year next week. I have something below for you to consider as far as purchasing your property;
My credit is not so good that I may not be able to get a conventional loan (mortgage). This may be the best option.
Your Asking Price - $575k
1) Find out from your lender if your mortgage can be assumed and if it can be, convince them that I will take over the mortgage, they do not normally have a credit check in this kind of situation.
2) The remainder - 575k - mortgage (eg. 575k-300k) can be paid to you amortize for 5 years ( the longer the better) until I can get a new loan(mortgage) for the amount owed to you. We will be paying for the mortgage once everything is in place and your money for five years and we ask if its okay we pay you at least $500 a month but not limited.
3) 50% of the money paid to you will be credited to the principal amount owed to you for five years(5yrs payment(50%) less principle). After five years I should be able to finance what we owe you.
4) When we own the property, it gives you freedom of everything about the house, maintenance, paying taxes and all, more importantly my credit will get better because of this.
5) Regarding the payment to you, we can still pay you through the same bank we normally deposit our monthly rent or you can open an escrow account at the same bank and they will require me to place a Quit Claim Deed into the escrow account with instructions that if a payment is late by a certain number of days then the escrow officer will automatically file the Quit Claim Deed, restoring the house back to you instantly.
6) Let me know if there is any existing lien against your property or anything that I need to know before we proceed.
Let me know of your thoughts on this issue.