If I Agree To Take Sub2 With Seller Paying The Difference On A Bad Mort & They Stop What Are My Outs

Comments(10)

• 
  karlK8th December, 2003

  Forget it. That's a sucker deal. Propose to discount the purchase price by the present value of their ongoing subsidy. I

• 
  myfrogger8th December, 2003

  I would not purchase this property subject to. When you transfer the deed you absolve the seller of all ties to that property. Yes, they are still responsible for the mortgage but there is no modivation other than them hurting their credit to pay...
  
  I might recommend doing a wrap around lease option. That way if your buyer does not excersise his option to purchase, you don't have to worry because you can simply not purchase.
  
  You might try to get the seller to refinance...
  
  You might consider a short sale depending on the situation.
  
  Hopefully some others here can give you advise. I have a pretty open mind and have a high risk tolerance, but I can see potential problems here. You also have the situation where the seller might not be able to make their $375 or whatever payment. Again there is no modivation to.
  
  Good luck!

• 
  Rogue8th December, 2003

  Interesting...
  
  If the sellers have any other property, you can negotiate the use of a performance mortgage against their second property.
  
  Although I am sure there are other ways to protect yourself (other than not doing the deal--which may be the best option), I can't think of any at the moment
  
  Hope this helps![ Edited by Rogue on Date 12/08/2003 ]

• 
  InActive_Account8th December, 2003

  Rather than consult my tea leaves, I'd like to know where the 7.5% figure came from????? I've had investors tell me that the seller will make up the difference on a regular basis. I guess that I've been rode hard and put up wet too many times to believe that.
  
  The bottom line is that they probably will default -at least, that's the way I play my cards. Therefore, the transaction must be good enough to do- based on that assumption.
  
  You can see if they have any assets (car, boat, property, which they will mortgage to you as additional security.
  But, for all intents and purposes the viability of deal should be based on the 12% mtg.

• 
  nebulousd8th December, 2003

  Boy, this creative investing thing is getting out of hand.
  
  Make the payment $1200 bucks, I wouldn't bank on the seller paying anything. have the seller make the next 3 payments and you now have 3 months to find a buyer.

• 
  cpifer8th December, 2003

  nebulousd,
  
  You be funny and right at the same time.
  Keep It Simple Stupid is my motto.
  
  C-

• 
  iglooman8th December, 2003

  If the "good deal" is contingent upon the seller making their payments, then this is not a good deal. If the seller making the payments just makes the deal a little sweeter then you may consider it further.
  
  I don't want any seller to be required to make payments on a house that they don't have anything to do with; it just isn't ethical. My suggestion, see if they can refinance to a (much) lower rate, and then have them sign over the deed. If their interest rate is 12% due to their credit rating, then you can assume that they don't really care about their credit so why would they pay you $350/mo. for something they don't care about?
  
  In my humble opinion, once a seller signs their deed over to me, I don't ever want to see or hear from that seller again, and the feeling is usually mutual. That is my selling point: you can walk away and not worry about this property ever again...
  
  Jace

• 
  verbatim8th December, 2003

  Quote:
  On 2003-12-08 12:44, karlK wrote:
  Forget it. That's a sucker deal. Propose to discount the purchase price by the present value of their ongoing subsidy. I
  
  
  Discount the purchase price by the present value of there loan? can you explain a little further please. it looked like you were about to write another sentence.
  
  
  Thanks for the advise guys

• 
  nebulousd8th December, 2003

  Dag iglooman,
  
  You don't send them a christmas card or anything? What did do you do to never want to see or hear from a person again? [ Edited by nebulousd on Date 12/08/2003 ]

• 
  verbatim9th December, 2003

  thanks for the responses guys