Closing Question?
I know this question has been answered here but I couldnt locate the answer. After taking a prop subto and getting your tb to pay for 2 years, how hard is it for lenders to treat the loan for them as a refi.. Dont most lenders want to see that the tenant buyer has a deed, or is having the deed in escrow and a written contract sufficient enough for a lender to give them the loan even though they dont really own the property?
Thanks Mike,
Ive only had time to post at work, and I am unable to get on the subto site from work for some reason so I had to post on this site, Thanks for the response though
thanks for the replies. I had never planned on doing a lease option, or have yet to come across a commercial property. I am trying to get all my ducks in a row and was trying to remember how the lenders looked at a cfd. Thanks for the input everyone!
John $CASH$ --concerning your statement
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For the folks that like to leave money on the table and there are a few that sell with a Lease/Option and they are willing to do this, however I find thay are normally in the beginners stage of investing until they learn the power of a Contract for Deed.
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Contract for deed, which I know your aware of, is very difficult in Texas and now even L/O are getting tough with SB629 trying to hamper thing in the Texas Legislature.
Yes, doing a CFD is basically gone from Texas unless you want to deal with all the rules.
Yes, SB629 is trying to get rid of Lease Options from Texas along with every other type of non-conventional ways to buy and sell a house.
Does this mean that Creative Investing is finished in Texas and we abandon all those investors in Texas along with all the people that need our help in Texas…I think not.
SB629 is not law yet and still must be passed in the state and signed before it becomes law. There are a lot of movements and lobbying going on right now to try to stop this from happening. Of course everyone’s help is needed and appreciated.
To answer the original posted question by mfparks … Mike’s answer is correct as a refi from a CFD is a lot easier especially when you have the back-up of a Loan Servicing Company verifying your buyer’s payment history.
John (LV)