Can You Get Cash Out Of A Property When Your Name Is On The Deed?
In a subject to purchase, once your name is on the deed, can you go to the bank (or anywhere else) and borrow money against the property itself?.........how is this done?......and maybe i'm not wording the question properly, but i'm sure some of you gurus will know what i'm trying to get at?......also, once the meeting is set up between you, the buyer and the seller, what forms would you guys use to complete this transaction? (i.e. contract, quit claim deed, etc.) and once all the forms are signed, i know they should be notarized, but who needs to go file the deed at the courthouse, myself or the seller? thanks in advance for all assistance
[addsig]
Heck yeah!
You can pull cash out (via a refi) because you now OWN it. You can do whatever you wanna do.
Me, personally...I would just leave that seller's name on the mortgage until MY buyer refinanced.
If you were to refinance to pull cash out, you would then have to jump thru hoops @ the bank and might also have to pay closing/finance fees.
That's the whole concept to buying subject-to....get a house without using your credit or $$$.
Maybe you could get enough on the down payment from YOUR buyer so you wouldn't have to pull anymore cash out.
Unless you were gonna buy a Bentley or something like that.
YOU record the ---> Warranty Deed at the courthouse...not the seller.
As far as documents:
....do you have John's manual?
Yes? it's on page 83
No? ...get it if you don't...RUN!!!
If you cannot get it soon...
I am sure someone will chime in on the documents you use....
I can't see your post as I respond to answer what all you asked...sorry.
Until then, hope this helps.
Regards,
Jason
[addsig]
I have a follow up question.
Let's say I take a property subject to, and I have about 30k in equity.
The loan paramters are horrible:
First trust PITI is $920
Second trust is $720
Once they deed me the house, can I go ahead and refi those two loans under my name? Is that legal?
THANKS!
I recently did a sub2 and had some trouble refi'ing because of 'seasoning' issues' with the lender. It eventually got done but i had to hold the property for awhile. Just a heads up.
If you plan on refinancing out it would be a good idea to talk with a couple lenders/brokers in advance. I just met with a lender and a mortgage broker. The lender told me that their would be an issue with the seasoning, however, my broker looked into it and so they she could get it done with no issues! This just goes to show you that some banks have more hoops for you to jump through than others!
BAMZ
vcrindc,
Yes, it IS legal to refi after you get the deed...like I said earlier....YOU own the house now...do as you please
You can refi after getting the deed like you stated earlier...
...others have gotten the seller to refinance BEFORE they deed you the property --to perhaps get a lower interest rate.
Then again, if their credit sucks, that route would be pointless....you could refi AFTER you get the deed.
I am currently in negotiations with a seller.
Owes ~$21,000 ($201.03 /mo.) ..... Appraises for $47,000.
Him and his wife need some moving money as well as some to put down on some land. (They wanna get a MH)
Asking $25,000.
I am contemplating the idea of getting them to refi for $25,000. They payoff that $21,000 mtg....he gets ~$4,000 for moving and a down payment on other home.
I would then take over that $25,000.
I could then easily sell retail or owner finance for a nice chunk of $$$$.
Later,
Jason
[addsig]
While you are at it go get a piece of land and a mobile. You have a buyer ready, right? Double dipping is always sweet.