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Why do we need to CMA's when doing MAPS?

Elizabeth Kothapa's Avatar

Elizabeth Kothapa

16 Dec, 2010 08:10 PM

Hi!

I want to clarify something ive been confused with and I will use an example...(this example assumes their is no realtors involved AND no repairs)

1) If a SELLER's loan balance is $100,000 and let's they are even underwater by $5,000. This means they need $105,000 to pay off their loan.

2) So, if we get their home under contract and then simply advertise the home for $110,000 (adding 5k for closing costs)

3) And then, simply let the BUYER know the house's purchase price is 110k and will be paying us(the investor) a 5k Mortgage assigment fee when they purchase the home...then we are all set right?

In other words, in this above example...what would be the point of any CMA's?

Thank you! :)

Liz

  1. Support Staff 1 Posted by Brittney Rogers on 07 Jan, 2011 02:00 AM

    Brittney Rogers's Avatar

    That's one of the beauties of Mortgage Assignment - you don't necessarily need a CMA. In the case you described all you need is the loan balance from a willing seller and a down payment from a willing buyer that will pay what you ask. Then you are good to go.
    However, you might want a CMA if there is some equity in the deal and you want to do a Wrap Note or a Second. But again, that's up to you and your willing buyer.
    Shenoah

  2. Brittney Rogers closed this discussion on 07 Jan, 2011 02:00 AM.

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