Posted by DJ-nyc on October 06, 2009 at 09:54:26:
I am looking very seriously into this strategy myself. The ability to obtain financing is very tough, so it looks like the way to go for now. My concern is making sure the HomeOwner “walks away” and the laws that may protect me from him coming back and saying, “I did not know I deeded my house to him, I did not know what I was doing…blah blah”) Contact your attorney about the laws in your county/state.
DJ-nyc
Is Subject To still a viable buying tool in 2009? - Posted by MPS
Posted by MPS on October 05, 2009 at 12:36:12:
Hello all,
Years ago, I took over the majority of my houses subject to. With the current economic upheaval and constantly changing rules regarding mortgages in the market place, is subject to even being used as an investing alternative now?
extra disclosure - Posted by JasonWDTX
Posted by JasonWDTX on February 19, 2010 at 10:05:53:
I have added an extra disclosure in 09 to my subject to paperwork I have used for years. One page in big bold print stating the Seller understands he/she: no longer owns the property, that the seller has no ownership in the land trust or any entity that owns the property, and that the seller is not promised any future promises or revenue of any kind. I use 14 point bold print and nothing else on that page so it is not lost in the fine print of all the paperwork. I also have that disclosure notarized and I have other disclosures as well but I keep them on separate documents so they stand out more than if they were all lumped in one long document. I’m not saying a seller won’t try to come back and sue, but they can’t say they were unaware of deeding the property away. I haven’t had a seller come back on me but I added the that disclosure after the horror stories I hear just in case one tries in the future.
What lawyer? - Posted by John Merchant
Posted by John Merchant on November 23, 2009 at 10:26:31:
DJ’s advice is spot-on but I’d modify it just a little.
When possible, have S’s lawyer in on the deal so he won’t be coming after you for any kind of fraud, etc.
In my deals I’ll at least have S sign off on statement that I’ve advised him to have his own lawyer look at the deal, paperwork, etc.
Now of course often S isn’t willing or able to pay his own lawyer but he’s said in writing that you did advise him to do so and that’s some protection for you.
Another ploy I’ve used is to have a 3d party present to witness the deal and be able to testify as to how fair you and the whole transaction were and how the S was so eager he seemed to ignore your good advice.
Since a Deed you’d take from Seller has to be notarized to be recordable you should also pick your own Notary.
And maybe give him a little list of questions to ask when you both meet with the seller so he, the NP, could also be a witness later should you need one.