When closing at the title company on a subject-to, do you make up the arrears through the title co or do you just write the check directly to lender yourself?
You sold a house to a buyer for 50k. The buyer got a mortgage. The buyer then deeded the house back to you. You (the owner) and the buyer signed an option agreement that the buyer would refi the house within 12 months at 75k and give you the 25k spread. Is this correct? Have you recorded the deed?
There is probably loan fraud. It is loan fraud to get a loan as owner occupied when you know it will be an investment. So he got a loan knowing that he was going to deed the house to you. But nobody is going to bring any charges over this type of one time loan fraud.
Can your buyer get a 75k loan or a 25k LOC? Can he qualify? At what price would the house appraise?
If they have serious medical bills and cannot refi for an additional $25k, then there is NO WAY they have money for lengthy litigation and the attorney is not going to take this case without cash up front. Try offering some walking money and take the house back and try again.
So the house will appraise for 75k, but previously you could not find anyone to buy it for 50k. The market has not gotten better since to sold the house. Do you honestly think that now you could sell it to someone else for 75k?
I write it to the lender. No need to involve the title company.
[addsig]
You sold a house to a buyer for 50k. The buyer got a mortgage. The buyer then deeded the house back to you. You (the owner) and the buyer signed an option agreement that the buyer would refi the house within 12 months at 75k and give you the 25k spread. Is this correct? Have you recorded the deed?
There is probably loan fraud. It is loan fraud to get a loan as owner occupied when you know it will be an investment. So he got a loan knowing that he was going to deed the house to you. But nobody is going to bring any charges over this type of one time loan fraud.
Can your buyer get a 75k loan or a 25k LOC? Can he qualify? At what price would the house appraise?
If they have serious medical bills and cannot refi for an additional $25k, then there is NO WAY they have money for lengthy litigation and the attorney is not going to take this case without cash up front. Try offering some walking money and take the house back and try again.
So the house will appraise for 75k, but previously you could not find anyone to buy it for 50k. The market has not gotten better since to sold the house. Do you honestly think that now you could sell it to someone else for 75k?
Rehab2Day, thanks, I may do that.