Posted by colvegas on August 30, 2006 at 11:38:46:
I wholeheartedly agree with Mr Dutch and Mr Merchant on this.
It would be unethical and irresponsible to cause any damage to this sellers credit or any financial hardship since they did take on this responsibility in this subject to deal to follow through and sell it or lease it out depending on the exit strategy.
Mr dutch is correct in that more attorney generals are passing anti-investor legistation in matters of subject to deal and that goes for L/O deals as well not to mention this lender calling the loan due and payable when they find out that the deed changed hands w/o their approval…
Bought Subject To - Now Can’t Pay Mortgage - Posted by arkansaswifey
Posted by arkansaswifey on August 29, 2006 at 10:41:24:
We bought a country home ‘subject to’ last June. Started the rehab and put it on the market as a FSBO. Got some lookers, no offers so we took it off the market. Continued the rehab and paying the mortgage ($1370) and insurance ($220). Now, a year later we are just plain tired of this place - everytime we think we’re done with rehabbing it, something pops up. Now, we have a leak under the house, but everytime my husband thinks he’s gotten it, it shows up somewhere else. This house is the original money pit! We put it on the market one other time and once again, we had lookers but no offers.
Well, now we’ve come to the point of not being able to continue paying the mortgage because of some financial changes in our household. If we put it back on the market, I’m afraid it will just sit there for months (months that we can’t afford).
My husband wants to give it back to the original owners who now live in another state. Can we do that? I feel bad about doing that because they can’t afford the payments which is how we got the house.
The house is located in Bentonville, Arkansas if that helps. The balance of the mortgage is $187k. We are now asking $207k, but this may need to be reduced.
Equity skimming laws very dangerous - Posted by John Merchant
Posted by John Merchant on August 29, 2006 at 17:08:04:
While I don’t know about Ark., a number of states have enacted legislation that makes the buyer of a sub-to (you, in this case)criminally liable for monetary losses to the S which are caused by you.
So you must take responsibility for moving it on to somebody who’ll make those payments and keep from causing your seller more problems or financial damages.
Re: Bought Subject To - Now Can’t Pay Mortgage - Posted by colvegas
Posted by colvegas on August 29, 2006 at 11:34:04:
Well, I would try to lease it out if possible to recoup some monies on this deal.
Another option is to user seller financing to move the note since from you said you wish to get out of this one.
There are creative options you can consider on this.
Feel free to call me at 702-400-7632 to discuss.
It would be a shame to have this house go back to the original owners since it will surely go to foreclosue .
Not to mention unethical. This is why more and more states will continue to outlaw Sub2 deals. Drop the price and sell the dam thing. Take the loss, move on. You made a promise to the previous owners. You owe it to them, yourselves, and the rest of us to honor your word.