Forms Necessary For "subject To"
I'm just getting started with SUB2 deals. I live in SLC Utah and wonder if anyone on this board could provide an all inclusive list of the legal documents necessary to do a SUB2 deal with a brief description of the reason why the document(s) are used. From the offer to the close. The more details the better. Thanks in advance to anyone that can help this newbie along. 
It sounds like youre in need of a full couse.. which from my understanding John "cash" locke's Sub2 thats what I do - you can find it on this site... would solve this delima or curiosity... and of course their are many forms on disc that are available....
Sounds like you need to invest in a course. There are many available to choose from so do your homework and pick one up that covers what you are looking for.
In the meantime, here is a brief list of the basic forms you should use to take a sub2. You could do it with less and there may be additional ones you need depending on your state requirements.
1. Sign A Contract With The Seller Subject To The Existing Mortgages.
2. Have The Seller Sign The Seller Property Disclosure Statement. To Determine the condition of the property.
3. Have The Seller Sign The Seller’s Affidavit. (Same Name Affidavit) If They Use Initials For There Name.
4. Have Seller Sign A Power Of Attorney for the property.
5. Seller Then Signs Seller Mortgage Disclosure Statement (Due On Sale Disclosure Notice).
6. Have Seller Sign The “Change Of Address” Form From The Seller’s Mortgage Company Statement.
7. Now you Create The Land Trust, Which Will Own The Property.
8. You Sign Appointment Of Trustee. (Your Appointee)
9. You Sign Appointment Of Successor Trustee. (Your Appointee)
10. You and Your Trustee Signs “Declaration Of Trust And Land Trust Agreement Naming You Or your entity As Beneficiary.
11. Have The Seller Sign The “Standard Warranty Ded” Before A Notary. Attach an Affadivit of Trust to Deed.
12. Verify All Mortgage Balances.
13. Before You Invest Any Money Paying A Seller Or Bringing A Loan Current, Always Get A Title Search From An Insured Title Researcher. Verify That The Sellers Are The Proper Parties And That No Undisclosed Liens Exist.
14. Record The “Standard Warranty Deed” Along With The “Affidavit Of Land Trust” As Soon As Possible.
15. Contact your insurance company and place your trustee as insured and the seller as there interest may appear.
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stanman,
Glad to meet you.
To be on the safe side don't let long posts about what you need confuse you as I am pretty sure you were.
I have invested in Utah, as a matter of fact I just spent a few weeks in Provo not to long ago helping some of my students.
All states have different requirements to make your paperwork state specific, so start at one of your local title companies and see what they require, this way you will have begun to have an basic understanding of what is required to do a deal.
Once you have spoken wtih someone at a title company it makes it a whole lot less complicated from a new persons standpoint.
John $Cash$ Locke
[ Edited by JohnLocke on Date 11/28/2003 ]
If I had to do all that paperwork listed above, I probably would never have gotten into this business.
It is a lot simpler than that, as you can see by this link:
http://www.thecreativeinvestor.com/ViewTopic17133-34-2.html
You just need to make sure your paperwork is state specific.
Best of luck
John (LV)
stan,
Once you have the forms on your computer, printing them out is easy. Not as hard as some would have you believe, besides, most people expect to sign paperwork when selling their house.
Better safe than reckless. The AG is doing an all out investigation into sub2 in the state of NC right now and there looks are fears that there will actually be legislation put in place to stop sub2 investing in that state. I spoke with someone in Ron LeGrand's office about it at length a couple of weeks ago.
Probably will never need most of them but if the worst happens, you will be glad you do have them.
WilliamGA,
I have your course material & have really enjoyed it. It was very thorough & helpful in getting me started on my sub2 career.
Your comments to stan regarding how the AG is investigating sub2 in NC concerns me. I'm in OH & about to begin sub2 investing primarily & I'm wondering if you're aware of any legislation that may affect my state? Also, where do you recommend I go to keep on top of these legal matters? I know I could seek out an attorney (that's on my to do list) do you have additional suggestions?
Thanks for your help. I really enjoy reading your posts.
Take Care,
Justin(OH)
My comments on the NC investigation (which is happening by the way) is to drive home the point that we must treat this as much like a business as possible.
The stance that you just get a deed and move on is dangerous and if this technique gets looked at closely, could be bad for investors as a whole.
I don't really think that sub2 will be "outlawed" or I wouldn't continue to invest this way. I do believe it is my job to present the facts as I know them, good and bad. The fact is as more and more people use this method and more and more variations on how it is done surface, the more likely the chance it will somehow become controlled or worse.
Knowing that we are under a microscope should make us all the more determined to cross "I"s and dot "T"s.
As I said before, proper documentation that shows all parties know exactly what was going on is not a guarantee that there will be no problems but it sure can't hurt in a worse case scenario.
Just my opinion.
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Stanman,
I was just in Sandy looking at a property. Very Nice place. Please PM or e-mail me if you are interested in assisting me in any way. I may need some "local" "Eyes & Ears" or more.
Thanks.
Check my profile for details.
PS: Your profile doesn't show any contact information.
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What a great bunch of people. I have been away for a couple of days and have not had the chance to login.
Thanks to all of you for taking the time to respond to my message. It has really helped to get me oriented.
Hopefully, I will be able to return the favor some day.
Yeah it is also illegal in the state of NC to host a bingo game for more than 5 hours.
LAW: It is illegal for a bingo game to last longer than five hours, unless the bingo is being played at a fair.
COUNTRY: USA / STATE: North Carolina
CITATION: §14-309.8. Limit on sessions.
ACTUAL: The number of sessions of bingo conducted or sponsored by an exempt organization shall be limited to two sessions per week and such sessions must not exceed a period of five hours each per session. No two sessions of bingo shall be held within a 48-hour period of time. No more than two sessions of bingo shall be operated or conducted in any one building, hall or structure during any one calendar week and if two sessions are held, they must be held by the same exempt organization. This section shall not apply to bingo games conducted at a fair or other exhibition conducted pursuant to Article 45 of Chapter 106 of the General Statutes.