Even if Dave can't talk Tim out of borrowing to buy a repossession house by the lake, he offers ways to get a great deal.
QUESTION: Tim and his wife own their house debt free and want to invest in a second home. They want to buy a bank-repossession home. One house was on the market in the low $400,000 range, but they only have enough cash for the $100,000 down payment and would borrow the rest. How do they approach this?
ANSWER: What part of being debt free don’t you like? There’s nothing I want bad enough to go back into debt. To answer your question logically, there is no rhyme or reason for what they will take for it. It’s whatever they think they can get out of it.
You could ask them to carry the balance non-recourse. That means you don’t personally sign for it and the property stands good for the debt. That combined with your down payment makes them pretty safe. If they ever take it back, they’ll keep your money. Get some good terms out of them and then get this paid off. If you are comfortable offering in the mid-200s, then do that and see if they’ll bite.