Any Ideas For This?
I am looking at a property that is owned by another family member and we are looking to purchase. Question is, they are currently are under a land contract. What is the best option to acquire the property with no $ out of pocket except possibly cashing out equity to family member. I know there are 8 ways to get to a finish line so to speak, just looking for the best...
ie-assume loan, wrap-around land contract, lease/option, etc.
There is a balloon on the property in 4 years, which shouldn't be an issue.
Ideas? Obviously want to make sure stay within legal aka on the upandup - routes
Thanks for any help!
I am working a similar deal as we speak. The seller, in my case, wants no equity out of the home but because he bought on contract is unable to provide me a deed.
It is on my agenda to call the deed holder (origional seller) and try to work sub2. A reason why they may be interested in doing this would be that they probably would be willing to sell their position to you for an all-cash offer. You do not need to pay off their mortgage but simply give them enough to sign you over the deed. This is likely easier said than done.
If you can't get this done, you can have your attorney draft an assignment of contract. You should watch out for "due on sale clauses" in the contract because there is a very high chance that the contract holder will not like that the property was transfered. Obtain a copy of the origional contract and have your attorney advise you from there. You may also want to consider obtaining a quit claim deed to use in the future if needed.
This isn't a preferable way to buy real estate, in my opinion, but certainly is an option.
Well, since you reminded me I needed to try to get ahold of the previous owners (deed holders) I tried them just now and they were home. I set an appointment to meet with them.
Although they didn't seem concerned with how I found them, they did ask if I spoke with John, the guy the sold the house to on contract. Note that this was after we set the appointment that they asked me this. This was perfect and I explained a little what I was doing and that John was having all sorts of problems with his properties and one has already gone back to the bank. See I did my background to find out why John bought this property on contract in the first place. The origional owners couldn't run the place either and sold out quickly to John who was willing to take over and help them out of a bind.
Now I had built the modivation even more with the sellers when they asked if they could move the appointment from the evening to 3pm when they both would be home from work. They didn't want the property back and were beginning to worry. Maybe I can get into this without giving them much money!
Myfrogger -
with some variables to look into getting this accomplished.
Thanks for the GREAT input. Obviously there IS a way
Thanks again!