Pre-Foreclosure Deed Transfer Question - Posted by Flipster
Posted by Flipster on September 29, 2003 at 08:11:51:
Hi, In a Preforeclosure can the Homeowner legally tranfer the deed over to an investor and the investor bringing the Mortgage current and continue making payments “Subject to” existing financing??? Wouldn’t the lender call the note due???..if the lender finds out that the owner has transfered deed they will probably call note due but to avoid this I guess you could Flip the house before lender attempts to call the note and the Buyer pays off the loan leaving you a profit. Also, the original seller could transfer the deed to the investor and do a sanwich Lease/ Option with a tenant/buyer for 2 years and after 2 yrs tenant/buyer Finance the house and paying off the balance of the 1st mortgage and the investor keeping the spread. Some investors that have the Deed transfered to them just find a Hard Money lender and pay off the Balance of the Loan and resell…So basically my question is: in a Pre-foreclosure deal what’s the best way to aquire the property without having to put pay off the loan balance…“Subject to” or Lease/Option ??? any Suggestions? Thanks ;o)