Posted by Nate(DC) on September 29, 2002 at 21:46:01:
The subject-to sale will likely be considered a sale by the city. I would ask them, and if there is any hint of trouble, pay it off to be on the safe side. No reason to endanger your investment, especially, as you say, since you are capable of paying off the second.
NT
subject 2 with a city loan as a second - Posted by Craig (IL)
Posted by Craig (IL) on September 29, 2002 at 11:37:43:
Will the holder of the first find out and mess up my plans? Is there a better way?
I may pick up a home subect-2 with FMV = 82.5K, with a first of under 30K and a second from the city in the amount of $4280.00 at zero interst and no payments unless sold. With only 5k fix-up, this would be a money maker. My attorney has told me that, even though I intend for the seller to put in a trust and then assign the trust to me, I should talk directly with the city, maybe to get it asigned to me. I’d take the property even if I have to pay off the second, but I’d rather not. Although she understands this basic strategy, my attorney is not up on creative techniques. Do you have any suggestions? Any experience with this kind of seconds.