what sounds fishy to me though is that they want to keep the house in my name/ what if they decide not to pay then i have to foreclose and i have 2 mortgages.
There are lots of different ways to sells house. You need to look at your situation and pick the way that is the best for your situation. If you have lots of time and lots of equity, then get a realtor and list it on the MLS. If you do not have equity or time or the house is in need of repair then you have to probably choose a different route.
Subject to you are trusting that the investor will make your payments. Just as you are trusting when you sell a house and hold the paper. You can always call the bank each month and verify that the payments are being made. But if that makes you uncomfortable, then do a lease option.
In general terms, a lease option is an arrangement where a prospective buyer moves into a property as a tenant. The buyer has the right to buy the property for a specific price during the option period. The monthly rent is equal to the fair market rental rate plus an additional sum. The additional sum is credited to the buyer at closing, should the buyer exercise the option to purchase. If the buyer does not buy the property, then the additional monthly payments go to the owner.
Yes this a fairly common technique. It is called "Subject to" purchasing and it has its own forum here at TCI. I recommend you go there and read many of the posts to acquaint yourself with the process and the risks involved.
You should remember that most of the conversation here about Subject to investing is by investors who purchase homes in this way and those who would like to be doing so. They have a different set of concerns regarding the risks of these transactions than you to.
You might, in particular want to check the links below:
with a l/o you are obligated to sale at a predetermined price in X amount of time to the tenant/buyer. the tentant is not obligated to buy and can walk away from the deal at any time. the tentant/buyer will forfiet the deposit that they paid to you and any rent that was paid. the home is still in your name and is yours until the t/b exercises his option to buy..........km
They may not call it subject to, they may say that they will refinance within 180 days or 18 months etc.
Generally if they are giving some $ down and making the payments the ho use will be worth more in a year than it is now and if you take it back you should be able to sell again.
This has bee done thousands of times in america, mostly with little real problems.
[addsig]
yes this is common and works out well if done with the right people. In your case lease option is the safest option.
what sounds fishy to me though is that they want to keep the house in my name/ what if they decide not to pay then i have to foreclose and i have 2 mortgages.
There are lots of different ways to sells house. You need to look at your situation and pick the way that is the best for your situation. If you have lots of time and lots of equity, then get a realtor and list it on the MLS. If you do not have equity or time or the house is in need of repair then you have to probably choose a different route.
Subject to you are trusting that the investor will make your payments. Just as you are trusting when you sell a house and hold the paper. You can always call the bank each month and verify that the payments are being made. But if that makes you uncomfortable, then do a lease option.
whats a lease option
In general terms, a lease option is an arrangement where a prospective buyer moves into a property as a tenant. The buyer has the right to buy the property for a specific price during the option period. The monthly rent is equal to the fair market rental rate plus an additional sum. The additional sum is credited to the buyer at closing, should the buyer exercise the option to purchase. If the buyer does not buy the property, then the additional monthly payments go to the owner.
BlueBoy,
Yes this a fairly common technique. It is called "Subject to" purchasing and it has its own forum here at TCI. I recommend you go there and read many of the posts to acquaint yourself with the process and the risks involved.
You should remember that most of the conversation here about Subject to investing is by investors who purchase homes in this way and those who would like to be doing so. They have a different set of concerns regarding the risks of these transactions than you to.
You might, in particular want to check the links below:
http://www.thecreativeinvestor.com/modules.php?op=modload&name=Forum&file=viewtopic&topic=29692&forum=34
http://www.thecreativeinvestor.com/modules.php?op=modload&name=Forum&file=viewtopic&topic=11582&forum=34
http://www.thecreativeinvestor.com/modules.php?op=modload&name=Forum&file=viewtopic&topic=16508&forum=34
with a l/o you are obligated to sale at a predetermined price in X amount of time to the tenant/buyer. the tentant is not obligated to buy and can walk away from the deal at any time. the tentant/buyer will forfiet the deposit that they paid to you and any rent that was paid. the home is still in your name and is yours until the t/b exercises his option to buy..........km
They may not call it subject to, they may say that they will refinance within 180 days or 18 months etc.
Generally if they are giving some $ down and making the payments the ho use will be worth more in a year than it is now and if you take it back you should be able to sell again.
This has bee done thousands of times in america, mostly with little real problems.
[addsig]