LC, CFD, contract for deed, all the same. You get a contract that states at some time in the future, you will get a deed. Just in our scenario, you get the deed immediately following the signing of the CFD. It would be like getting an option on a property, then a P & S immediately following.
Now, if this seller chooses to show their new lender this CFD, and not fully explain the Sub To, what can you do? (wink, wink)
Here’s the deal though Hank, this is ONLY done if their lender absolutely needs it. If they can find a lender to accept the sub to agreement as proof, no need for the CFD. This really isn’t a big deal. You’ve got a contract with them showing $1000 is “washing” every month. Banks are too ignorant when it comes to sub to. So give them what they want. If you’re going to continue to pay, what’s it matter if the old seller?s new lender was stupid enough to demand CFD over sub to.
I am just curious how many people are putting to use the strategy of new homes in new subs buying sub2? How have your results been? Would love feedback? Thanks for any response
Re: ABC’s of Subject To - - - - - Results - Posted by Marc NJ
Posted by Marc NJ on December 14, 2003 at 19:39:54:
Sub 2 deals work. But it will depend on your market. If the market is appreciating at a rate of 26% like we have here in Ocean County , NJ it will take many visits to motivated sellers to get one deal. But in markets that have cooled some it should’nt be a problem to sign a deal. I’ve done about 6 sub 2 deals in the NJ area in the last 2 years. So, I know that the sub 2 deal will work. Now about that course, I could not give you a comment b/c I didnt buy it. But that should’nt stop you from applying thier system, I’m sure that if you see many motivated sellers, you too can and will sign a sub 2 deal.
Good luck,
Marc NJ
Re: ABC’s of Subject To - - - - - Results - Posted by Hank FL
Posted by Hank FL on December 12, 2003 at 16:32:49:
Good course; exept for one thing I’m not gett’n.
I’ve got’a listen to it again, but the idea of writing up a fugazi land contract to show to the sellers lender to see to make their ratios look kosher confuses me.
You sign a CFD today. You get the deed tomorrow. What?
Yeah, it’s a little on the hair splitting side. However, I’ve found many sellers, and the most motivated ones don’t have a problem with having a loan stay in their name, regardless of the ratios.