Posted by Marty (MO) on February 29, 2004 at 08:42:25:
can you short sale this deal- chances are, taking over subject to, even with 15,000 equity, will leave you upside down.
good luck,
Marty
help! MH/land deal taken subject to - Posted by Lee Cain
Posted by Lee Cain on February 29, 2004 at 08:23:10:
I know this can be done, but I’m not sure how. I have a seller who is three months from foreclosure on a mobile home/land package. There is about 15K in equity and they will let me buy the home subject to the underlying loans. When I get a buyer, I will catch up the back payments from their down payment and owner finance the rest. The problem is, the titles and the deed are held by the lender. Can I create a bill of sale stating that when I pay off the loan, the title and deed are to be transfered to me? Help!
Slightly Different Animal - Posted by Tony-VA/NC
Posted by Tony-VA/NC on February 29, 2004 at 08:42:37:
When you introduce the Land into the equation, you change the deal and in theory the subject to gains ground, especially in a pre-foreclosure scenario.
You wrote that the lender holds both the title and Deed. Unless this is a Contract for Deed, the Lender does not hold the Deed. They will have a Deed of Trust (mortgage) and the title to the home (although they may have retired the title as is often the case … this means the home legally becomes a part of the real esate).
Your deal may have some promise for a variety of reasons. The details would need to be investigated and worked out. $15k equity can be misleading in this market so I suggest that you focus on cash flow instead of equity (especially if this is a single wide though I am not sure if it is).
Chances are a more direct approach would solve this problem or simply purchasing the property after the foreclosure might be more profitable.
Either way, going through the motions would no doubt be educational and a great step towards learning how to solve similar problems in your area.
Best Wishes,
Tony