Sub 2, Does That Mean LO
Okay, so maybe I just haven't figured this whole LO thing or maybe the seller just isn't understanding it. I have found a seller that isn't willing to do a LO, but will let me have her house on an assumable mortgage, isn't this the base for a LO. She says that investors have already tried to buy her house, but at an incredible discount that she can't take. What am I missing here or is she just not understanding what an LO is? She is having a new house built and said that she can't have this property held over her head, but isn't sub2 and LO going to do basically the same thing? I have read some material on LO, but not sub2 so I don't really know what I'm getting myself into. Can someone clarify this for me. What sort of contracts do I need to fill out? Do most sellers want some money upfront of a Sub2. I'm really confused!!
if she doesn't want this place over her head, doesn't sound like a sub 2, would fit her needs.
My understanding of a basic LO, is you buy the house, and then lease it back to the seller with the option to buy. This sounds perfect for her needs.
This way, she has a place to live while the new place is being built.
Ok. I'm not sure if she understands what an L/O is, but by assuming her mortgage, you are taking over her loan. With Sub 2, you have the deed, but the loan is in her name. With L/O, you are leasing the house, and at the end of the lease, you have the option to buy. All I can tell you is to tell her that people buy two houses all of the time. You can definately get her out from under payments, but she must be open minded and motivated. She can check with her broker and see if they will finance her with the other house still in her name, if she has a signed lease on the propertry. If you have any other questions, post them here. Until next time.........