dealing w/sewer payment on sub-to deal
I am working on a sub-to deal with a homeowner who is eager to move forward. We've got one sticking point, though. He owes the city water company about $5k for his share of sewer upgrades that were done in his neighborhood last year. He is making payments of approx. $40/month to the water company, and doesn't have the cash to pay it off in one lump sum. He has very little equity in the house, and I cannot give up more $ and still have a sufficiently attractive deal.
If he becomes unable to make the sewer payments, will it become my responsibility, and do I run the risk of having that lien attached to the property, which would be in my name? If so, is it too risky for me to take his house sub-to, with the seller continuing to make the sewer payments?
Anybody out there who knows that this risk is not as great as I'm fearing, or who has found creative solutions to this kind of situation?
Any help much appreciated!
Hey sewa,
This is one you should post to the
$cashman$ .....John $cash$ Locke
Look up top for his home page link.
Clif [ Edited by pbodys on Date 04/30/2003 ]