Re: Subject To??? - Posted by Bob at Get the Deed
Posted by Bob at Get the Deed on October 08, 2001 at 17:42:19:
Wow…I hope that I can help you.
First, even though we recommend getting the deed to pretty homes and taking over payments ‘subject to’ the mortgage…there are limits. Here’s why.
Generally, we make money on the fact that we can offer seller financing. We found however, that this feature isn’t so important once you get beyond the price of a ‘family type home’.
Executive caliber homes are usually purchased by someone that can arrange for thier own financing.
I too, bought an executive home ‘subject to’ (it was my second deal). I struggled to get rid of it. Eventually, I listed it and sold it retail.
What I’d suggest you do is to offer to buy the home on an option. You negotiate the price up front, but have no financial commitment that may pull you under. If you can sell it, then the original owner must sell it to you under predefined conditions. If you can’t find a buyer then you walk.
Why would the owner agree to this? Well, he’s got nothing to lose. If you sell it he gains and if he sells it he gains. No harm, no foul.
Generally, I’d rather catch fish from the school, rather than wait for that big whale to come buy.
Or how about,
Pigs get fed; hogs get slaughtered.
In any case, I wouldn’t sign a document for a property where I may lose in the deal. There are too many easy deals out there.
Hope this helps,
Bob Meister