Help regarding seller financing - how can I get in with 0% down? (agent, commissions)

[celebrationowner]

My husband and I live in Celebration, FL, the town Disney built and owned and now partially owns but has Lexin Capital managing it for them.

This is what I need help with, IF there is help to be gotten.

Celebration is EXTREMELY expensive. We found a home we want REALLY bad. The agent says the owner will do seller financing up to 20 years. Problem is they want a down payment and this was a spur of the moment thing, so we are not prepared. The house was purchased in 2000 for 1.2 million dollars, it then sold for $690,000 in 2001. The seller started out with an asking price of $880,000 six months ago and it is now $739,900. There are two parties that are making offers tomorrow. Our thought was to offer exactly what their asking and do a interest only 7 year seller financed loan. Because it would be interest only, the seller would make approximately $285,000 for those 7 year and then at the 7 year mark when we buy the house, they would get their full asking price too! The agent doesn't think they will go for it because they want money down because they attempted a lease purchase option and the potential buyer walked out after 7 months, leaving them to start all over. She also says they are from the UK and don't understand seller financing well and have just seen that banks sometimes want 20% down and think that is what they need to do.

Please, any real estate specialist out there!, what can we offer that may comfort them more, or what can we say. Should we mention the fact that with the interest only loan, that essentially is a huge down payment. What about offering more than what they are asking for now? They originally wanted $880,000. We had identity theft and have all kinds of police reports, but it is sooooo hard to get this all fixed. We have a 22% debt ratio which we have been told is excellent. We make Plenty of money, so that wouldn't be an issue on getting a loan down the road. Right now because of the identity theft, our credit score has plunged to 612. We have to do a seller finance and this is our dream house, therefore, that is why we are not prepared with a down payment.

We are desperate! PLEASE, any ideas on what can be said or done to make the deal sound better or not scary to the sellers?

Any help would be majorly appreciated.

[Chuckity]

Truthfully, if I were the seller, there is no way I would sell to you no matter how much money you offered. Because basically - you don't have any.

The amount you're offering is a phantom number - made even more pie in the sky because you don't have any skin in the game.

And interest only? Haven't you been paying any attention to the housing market and our economy?

[sj08054]

The seller wants money down cause they don't trust you. Why should they? As Chuckity stated, you have nothing to bring to the table.

[MMichelle]

Chuckity is correct.
In addition, I'd add that the seller has expenses in selling and closing the sale: commissions, title insurance, recording, etc. If the buyer puts no money down, the seller would need to bring that money to the table. All this AND hope you make your payments.

Before a seller would take zero money down, s/he would be better off renting the house out.

[windtimber]

Originally Posted by celebrationowner

...any ideas on what can be said or done to make the deal sound better or not scary to the sellers?

The deal you outlined SHOULD BE scary to the sellers. You're not going to be able to turn this sow's ear into a silk purse.