Message Font: Serif | Sans-Serif
No. of Recommendations: 2
jayob: "JAFO, Thank you for your concern."

Your welcome.

"As wradicals said, "That's your call, but only if your primary reason is to get the cash earlier rather than later." And that is the situation."

Ok. You know your deal and your reasons and you certainly do not need to explain them to me or in detail on a public board.

910 - 250 = 660 Note amount.

Interest only, no principal payments per your ealier report.

60, less or 10% reduction of the Note amount.

Not a horrible haircut, in terms of selling a note; many note buyers would ask for a bigger discount.

"This has not finalized, and I am working very hard to avoid the scenario I described. However, it is worth $ to me to avoid the issues of foreclosure and regaining responsibility for the property."


"How much $ is it worth to me? not really known at this time."

At least 60k per the above; perhaps even more? Seems expesnive to me, FWIW.

California has the one-action rule, non-judicial power of sale and as I understand it PM finacing is non-recourese, so the it would costs of non-judicial foreclosure sale, potential bankrupcty, holding costs (which depends upon estiate time to re-sell) and broker's commission.

Assuming that it would cost a 60% commission and sell for at least $800,000 that would be 46k commission that you save.

"But, thanks to the real estate market here in California, the real value of the property has plummeted since the original deal was struck.

Again, thank you for your concern and warning. I do appreciate that."

The concern that was also lurking is that you sold to a related party and the reduction is really more in the nature of a gift, especially if the buyer is not sharing any of the price loss related to the price depreciation.

Just my $0.02.

Regards, JAFO
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.