What do you think about this real estate add. A friend asked me if I thought it was a good deal.?

Question

I have never bought any property but my gut tells me this seems too good to be true.

No bank quailfications

If you have a stable income, You are approved!

$813.06 monthly - move in a week! Easy qualifying.

INTEREST RATE FIXED AT 5.25% FOR 30 YEARS!

NO PREPAYMENT PENALTY!

$139,900 PURCHASE PRICE

$813. Is your payment

No Down Payment!

All you need is $750 for closing costs.

First payment not due until September 2008 Call now, You will be so glad you did. I promise

Call Nema Lankarani ###-###-####

Prudential Arizona Properties

Answer 1

The only thing I can think of is that the owner of the house is holding the note (you are borrowing from him instead of the bank). I would also be very leery about the condition of the home.

If you seriously want to follow up on it, I would contact an independent real estate agent (not the one listed or anyone in his company) to investigate. As a buyer, the seller pays the real estate agent commissions. So, you have no risk there, but everything to gain by getting the advice of a real estate professional.

Answer 2

Be careful.  Start with the purchase price.  Try and compare it with other properties in the neighborhood.  Go to the assessor and get the assessed value.

Answer 3

The home is probably worth $75,000 and your are accepting owner financing terms. Check it out with a local appraiser and see what is going on. If there is some kind of shady financing going on, the appraiser will have to report it. They will also let you know if the market value is reasonable.

Answer 4

Ever heard of "Sounds too good to be true it probably is"  There is sure to be some catch there.