anything weird about this that I should look for?
OK, so this is a weird one. A friend of mine and former coworker sent me a message on facebook about this to ask my advice, since she knows I used to do mortgages.
It was listed as a "for sale by owner" but is a foreclosure. I did some research in the county records and it turns out the "owner" is a building contractor, and he carried the mortgage himself (well, via his building company) for this buyer and has since foreclosed. I talked to the seller, and he told me that the house is 3 years old, and aside from some pet stains in the carpet, its in great condition. He told me that as long as he clears what was owed plus legal costs (385k) then he's happy (house is valued at ~$550k) since less the note, he already made his money at the original sale and would have to credit any "profit" over the loan balance back to the buyer anyway. Apparently, the buyers had no credit established in the US but had a chunk of cash, so he agreed to carry the mortgage if they put a large amount down. Well, we can see how that worked out, haha. In fact the original buyers have returned to whatever country they came from.
If she decided to purchse this home, what should she watch out for, esp. if she's not going to use a realtor?