Posted by Terry (Houston) on September 03, 2001 at 21:42:42:
I use it on everyone I sign up that is behind.
Remember, Motivated Sellers! If you do not have to come out of pocket right up front you are ahead of the game.
Let you buyer make up the arrears. That means you have to know the numbers.
Explain that if it is close to foreclosure then you will pull it out of foreclosure, if you will.
If you know you can’t be upfront about it. Don’t mislead them.
Motivated, Motivated , Motivated. I have not signed one up that did go to foreclosure and I have pulled several out of foreclosure because the deal was there. But they all had that clause in there.
Contract Clause - ‘Subject To’ Deal w/ Arrearages - Posted by Gary C.
Posted by Gary C. on September 03, 2001 at 21:33:04:
Found this clause in a purchase contract from one of the gurus that is geared to ‘subject to’ transactions where the seller is in arrears:
“Seller(s) is aware that this loan may not be satisfied in full at closing and may continue to appear on Seller(s) credit file. Seller aware that buyer has agreed to make up the back payments only upon resale of the property. No promises have been made to do so prior to that time. If buyer is unable to resell the property, I understand the payments may not be brought current and the property may go into foreclosure, in which case the buyer will be held harmless.”
I would think that many sellers would not go through with this since you have affectively closed off the seller’s other options (if any) should one fail to perform. Anyone use something similar and what was the response?