Subject to Deal?? Need Help! Fast !! - Posted by Robby_ATL

Real Estate Investing
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Posted by Robby_ATL on June 21, 2001 at 12:13:44:

Should the title company have a problem with a “subject to” warranty deed?

How do I handle insurance on the property, if the loan is still in her name? Do I purchase my own policy?

And lastly, she is in FLA now and would prefer, not drive up for this. I, or the title company, could do this via FED EX. Correct?

Thanks for your info.

Robert
Atlanta GA

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Subject to Deal?? Need Help! Fast !! - Posted by Robby_ATL

Posted by Robby_ATL on June 21, 2001 at 10:45:23:

I received one of those phone calls that you read about but I never get, until now…

Seller recieved a postcard from me 3 months ago, called but wasn’t overly motivated, I let it go…

Yesterday, seller leaves me a message that she has just become “very flexible” and needs to do the deal now. She even tells me exactly what she needs on my voice mail.

Property is worth 100,000
Payoff is 66,000
Seller needs 6,000 to pay off debt and to leave town, moving to FLA

This is a rental property she owns not her residence.

Property is is in excellent shape, same tenant for past 5 year, currently rents for 750.00/month. Rents should be arount 900.00/ month.

Can I pay her 6,000 and have her sign a deed “subject to” the existing mortgage, record it, and move on from there or do I need to do a full closing at an attorneys office.

My 2 plans are…

1)Move tenant out and sell for a quick 25K profit

  1. Leave tenant in and make spread on rent every month…Tenant has no desire to buy property or move, according to seller.

Any help or suggestions would be greatly appreciated.

Thanks

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Whoa There… - Posted by TRandle

Posted by TRandle on June 21, 2001 at 12:07:42:

Robby,
Yes, this appears to be a deal and yes, you can’t steal in slow motion, but don’t drive off without your seat belt.

I would definitely do a full closing with a title policy if you don’t know how to do it yourself.

You also want to view the lease documents because in most states, if not all, you’ll have to honor the lease agreement.

You might consider getting an inspection done.

When will you close? What about the tenant’s deposits and prorated rent?

Have you verified the payoff? The terms of the loan?

I’m not trying to scare you, but there’s still a lot to be done. I’m sure I’m leaving other issues out, but I’m hurrying to get you a response. You can do everything that needs to be done very quickly so as to not lose the deal, but you do need to protect yourself. Hope that helps…

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Re: Subject to Deal?? Need Help! Fast !! - Posted by William Bronchick

Posted by William Bronchick on June 21, 2001 at 12:05:44:

Move FAST, not slowly and do it! I would do a closing with a title company if you are not sure how to do it. You want to make sure you are getting clear title (except for the existing mortgage, of course) and that the note is not in default, as a balloon payment or is variable rate. Once you verify this info, I would move quickly. If the interest rate is low enough, keep it as a rental or resell on a wraparound land contract.

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Re: Whoa There… - Posted by Robby_ATL

Posted by Robby_ATL on June 21, 2001 at 12:22:07:

Thanks for the valuable info…

I just made a list of items to discuss with her and those points helped quite a bit.

Also, great website www.quickoffers.com.

Robert
Atlanta GA