Posted by Marc NJ on February 08, 2004 at 22:08:58:
You must NOT sell them sub 2. You are responsible for the seller’s (who you bought them from) loans. You can sell them on a cotract for deed, or sell them out right, paying off the loans, but do not let your buyer take over the payments, this would most likely make you end up in court, if your buyer defaults. You are liable to make thes loan patments, if not made for some reason your seller can file a complaint and you would pay damages.
You could also sell on a L/O. Most investors sell sub 2 with a land contract or contract for deed, but in the case of default of your buyer, on one of these sales in some states you would have to foreclose,Check with an attorney. I prefer to sell on a L/O.
Hopes this helps.