First 'subject To' Deal Questions?
My wife and I have just completed our first deal and have a few questions about the title to the equity and the position we should take on the insurance policy.
We had the seller-quit claim the deed to us and would like to know if we could take out a home equity loan on the property to pull out some cash. If that’s not possible how else could we take advantage of the equity short of selling it?
My other question is about the insurance. Should we get state farm to write a whole knew policy. And if we did that could we run the risk of the bank calling the loan dew seeing that the insurance has changed from one party to another. Or can we ask the seller to just add us to the policy in some way. Than-x,
Tony.
First in the future buy the property using a waranty deed banks don't like QD's.
Next you are going to have difficulty locating someone to loan you money on the house because you will have been on title for less then a year.
However this doesn't mean its impossible If you have great credit you may able to get a loan. Also if you don't you will just have to located some lenders who do loans even if you haven't been on title for a year.
If that fails you may need to look in hardmoney lenders or private lenders.
Some investors get the seller to put the property into a land trust first that way he can sell the trust to you and this doesn't interefere with the due on sail clause[ Edited by demosthenes on Date 11/17/2003 ]