FHMa or USDA...subject to? - Posted by Dee-Texas

Real Estate Investing
1

Posted by JT - IN on June 25, 2001 at 07:56:19:

Dee:

I’m not sure about the pre 78 situation on these mortgages. You would have to read the mortgage itself, to determine if it contains d.o.s. clause. I just know hat R.Dev. will play hardball re: this issue, if there is a d.o.s. clause. I think even the rental of the property violates the spirit of their mortgage, (technically leaving out L/O), but check it out.

Good Luck.

JT - IN

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FHMa or USDA…subject to? - Posted by Dee-Texas

Posted by Dee-Texas on June 24, 2001 at 17:29:40:

Hello All,
Has anyone ever taken a FHMA subject to? The reason I asked is most of these loans have a hugh recapture fee that makes the house sometimes $10-15K over FMA BUT the payments and interest are really low. What happens when you sell? Can you ever come out ahead on these properties…This one is 3bedroom, 1 1/2 bath, garage, fenced back yard CH&A in excellent condition…all payments and taxes up to date.
Any idea?
Dee-Texas

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Stay far away from this one ! - Posted by JT - IN

Posted by JT - IN on June 24, 2001 at 23:59:23:

Dee:

FmHA, or as they are now referred to, Rural Development, has a penchant for triggering this recapture in deals where owner financing has been used to sell property, let alone an outright transfer of the property subject-to. Playing with FIRE here. Stay back 10,000 feet, or your eye brows (and other parts) will get singed.

JT - IN

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thanks JT…another question - Posted by Dee-Texas

Posted by Dee-Texas on June 25, 2001 at 07:23:08:

Thanks for answering my post. I was just trying to think my way around this. Does this have an assumable loan like FHA if the loan is made before 1978?
I haven’t do anything about this deal except…my do diligence. This people have good credit, not behind in payments but don’t have a buyer or the money to pay it off.
Thanks again,
Dee-Texas

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Re: thanks JT…another question - Posted by B.L.Renfrow

Posted by B.L.Renfrow on June 25, 2001 at 09:56:53:

Hi Dee,

I looked into one of these a while back. In my area, not only does the homeowner have to fill out a form every year, stating under penalty of perjury that they are still occupying the house, but the RDC actually sends an inspector to the property every year to verify the owner is living there.

Brian (NY)