Help: How to sell homes purchased subject to? - Posted by Mike, Tx

import · February 8, 2004, 8:05pm

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.
Marc NJ

import · February 8, 2004, 8:05pm

Posted by Mike, Tx on February 08, 2004 at 21:05:49:

Currently I have three properties purchased subject to. They are all rented out on a Rent to Own program. I have another investor interested in purchasing the houses from me for the cash flow and back end potential. The equity position is not large enough for him to consider getting new loans on the properties. He wants to take over the payments/notes and give me a lump sum at closing. How would you go about selling these homes to the investor and what liability concerns are involved? Everyone always explains how to purchase, now, how do you sell? Thank you for your assistance.

Mike, Tx