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Old 09-02-2009, 04:11 PM
 
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thanks
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Old 09-02-2009, 06:08 PM
 
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you can go to the Books website and find out the max loan on the home but you cant get the amount drawn.
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Old 09-02-2009, 06:15 PM
 
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That is helpful. Sorry to sound dumb but how exactly do I do that? I went to the deeds website and pulled out the deed but couldn't see anything
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Old 09-02-2009, 06:42 PM
 
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You are looking for a 'Deed of Trust' where the builder is the grantor. In the books page when you search, look for documents marked D/T and then try to reference the plat/lot number in the comments on the right side.
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Old 09-02-2009, 06:52 PM
 
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awesome thanks to both of you for the help. got it
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Old 09-03-2009, 06:40 AM
 
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I may be off, but don't builders (at least the larger ones) generally finance against their inventory of lots and houses as a whole, not on a one-by-one basis?
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Old 09-03-2009, 07:29 AM
 
Location: Cary, NC
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Quote:
Originally Posted by CHTransplant View Post
I may be off, but don't builders (at least the larger ones) generally finance against their inventory of lots and houses as a whole, not on a one-by-one basis?
Some use a line of credit, and some have a note on each property.
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Old 09-03-2009, 07:33 AM
 
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i am looking at local custom builders... spoke with my mortgage guy at bank and he said that generally they have one loan per house but used to frequently take money from one to use on another ("rolling" the loans as one house goes up and gets sold and then they use undrawn funds to start the next before starting a new loan). anyways it does help to know how much potential commitment there is against a given property in negotiating. obviously knowing to the penny how much a guy has spent in debt and equity would be ideal, but for that you have to ask and trust the answer.
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Old 09-03-2009, 07:46 PM
 
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Knowing what may be outstanding on a given property could help or hurt a buyer. That number really doesn't have anything to do with the property's current value. I'd be looking hard at the full listing history on the property-when was the permit pulled? How long has there been a C/O? What are the comps? Is the property in a stagnant neighborhood full of vacant homes, or is there something that makes that particular home a White Elephant?
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Old 09-05-2009, 06:20 PM
 
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Actually, I you are very smart to try to find out what the builder owes on the house. That will give you a bit of leverage as it is doubtful they will sell "below market" if they are going to lose money.

The only true value of a home is what someone is willing to pay for it.
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