Posted by JohnBoy on July 11, 2001 at 12:39:58:
What about it?
Deal…Need Advise - Posted by Lehman
Posted by Lehman on July 11, 2001 at 10:13:08:
I have the chance to get into something I think would be a good deal but have some problems (I think)
I have to chance to get into a home that sold/appraisaed for $350,000 last year. The balance on the property is $280,000 and the lady can not affoed it anymore and just wants out for the balance. The house really needs no work maybe slight updating and the house accross the street is 1000 sq ft smaller and is on the market for 310,000. I do not have the best credit in the world and I am worried that due to my credit situation I might miss this deal. Any help would be appreciated.
Re: Deal…Need Advise - Posted by will
Posted by will on July 11, 2001 at 14:44:56:
I agree with JohnBoy. Just get the deed and take over the payments using the subject to method. If you want a better, more detailed description, send me an email, I’ll let you know the whole process.
Good Luck!
Will
Re: Deal…Need Advise - Posted by SueC
Posted by SueC on July 11, 2001 at 12:28:23:
Have you determined how easy it will be to rent this property if you do a lease option? The reason I ask is, why not consider a straight option? Take an option for 60-90 days, market the heck out of it with Seller Financing Available and see if you can just do a quick retail flip. This would mean you have to be able to march buyers through, but tell her you will be bringing partners and potential renters to see the house, and that you will give her advance notice to be out of there for appointments, etc. Your credit is never an issue, and you need only $10 or something minor for option consideration.
Re: Deal…Need Advise - Posted by terry
Posted by terry on July 11, 2001 at 10:44:45:
Can you afford to own the house,are you going to resell
it ,if the house sold for 350 last year it must be at least worth/market value of that unless you are in a buyers market,sounds like a good deal.If she just wants the payments off her back,just do a wrap around loet her continue to make the payment to the bank you pay her,make a decission,she is willing to do almost anything if she cant make payments
Re: Deal…Need Advise - Posted by JohnBoy
Posted by JohnBoy on July 11, 2001 at 10:33:07:
If all she wants is out then just take her loan over subject to. No credit, no income, no job needed! Read up on subject to on this site and get Bronchick’s Alternative Financing Course that covers everything you need to know on how to structure these properly.
Re: Deal…Need Advise - Posted by will
Posted by will on July 11, 2001 at 14:46:56:
Sue,
I’m curious about how an option works in this situation. What form(s) do you use? Email me directly with an explanantion.
Thanks
Re: Deal…Need Advise - Posted by JohnBoy
Posted by JohnBoy on July 11, 2001 at 10:48:54:
Do NOT pay her and let her make the payments to the bank. She may decide to use that money for something else and not make the payments! Take her loan over subject to, get the deed to the property and you send the payments directly to the bank yourself to insure they’re being made on time every month.
I find it strange - Posted by Bud Branstetter
Posted by Bud Branstetter on July 11, 2001 at 21:12:26:
You say in the post above to email you directly for detailed instructions on how to do subject to’s but yet you ask Sue to email you directly with an explanation of how to do an option.
Re: Deal…Need Advise - Posted by terry
Posted by terry on July 11, 2001 at 11:30:55:
what about due on sale clause he could leave the loan in her name and make payments to the bank hiself
Re: I find it strange - Posted by will
Posted by will on July 11, 2001 at 22:41:53:
Bud, did you have a specific question about subject to deals or are you a detective?
What about it? - Posted by Jim FL
Posted by Jim FL on July 12, 2001 at 23:24:12:
Terry,
You are right, the buyer could leave the loan in the sellers name and make the payments directly to the lender, and STILL own the house.
Due On Sale clauses?
So what?!
No a problem.
Read up on “Beating the Due on Sale clause” here in the “How to” articles, and at www.legalwiz.com.
All the buyer needs to do is have the seller sell the home to them “Subject to” the existing financing.
This is commonly known here as “Getting the deed”.
Done all the time, legal, and works quite well with a seller like this one described here.
Due on Sale clauses should not scare anyone from a deal. Once you read the things I mentioned you will hopefully understand this.
By the way, a “Wrap” or a “Land contract” or any other way of giving equitable interest in a home is a possible violation of the D.O.S. clause.
So they may as well get the deed and have ALL the benefits of ownership.
Have a nice day,
Jim FL