No equity, and the agent still gets paid.
A condo where the payoff swallowed the commission. We took the loan over at its existing rate and funded the listing side ourselves.
The situation
The unit had taken two offers, both under the payoff. The seller owed $162,162 on a condo worth about what she owed, so any conventional sale that cleared the loan also had to cover a commission there was no equity to pay. She had relocated and was carrying $1,352.48 a month on a place she no longer lived in.
The structure
She deeds us the property and the existing loan stays in her name at 5.625%, roughly nine-tenths of a point under market. We take over the payments from closing forward. Cash at close is set at 2.5% of the balance and written into the offer as commission to the listing side.
Where it stands
Out for signature at $166,162 with $4,000 to the listing agent. Association dues, rental comps, and the building’s leasing restrictions are still open, and any one of them can end it. We would rather say that now than after the fact.