motivated seller with little or no equity

Comments(8)

• 
  rajwarrior28th May, 2003

  You'll need to offer us a lot more info than that if you want any kind of worthwhile advice.
  
  How much is owed? What is the FMV? What are comparables renting for? Is it a rental area or a buyer area? Does it need any work?
  
  Anything that may make a difference.
  
  Roger

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  jorge12128th May, 2003

  Does that $750 payment include escrow for taxes and insurance as well? If the buyer was willing to walk away from the deal you could take the property subject to the existing mortgage and execute a deed. You could him some walk away money like $250-500.
  
  Why is he selling???

• 
  Wingnut28th May, 2003

  to raj, the fmv on the house is $105,000
  and $101,000 is owed. the house is in rental area. it does not need any repairs.
  
  to jorge 121, i am not to sure as to the process of 'subject to' . the payment price of $750 includes, payment, taxes, insurance and hoa. like i said above the property needs nothing. if you have any advice on how subject to works, please let me know. thanks

• 
  jorge12128th May, 2003

  Wingnut:
  
  Under a subject to deal you are taking the title to the property (a/k/a the deed) subject to the existing mortgage. The mortgage is an encumbrance on the title and since you don't intend on paying it off when you transfer ownership to you would be taking title "subject to" that mortgage. Understand?

• 
  GaryM28th May, 2003

  Hey wingnut,
  Go to the shopping section at top of page and find John Locke's book,it will teach everything you want to know about subject-to deals.not very expensive but invaluable to own.

• 
  Wingnut28th May, 2003

  to jorge 121, thanks for the information, I understand what it means now, however I have another question. How much time and how many $$'s would take to make the deal. also, what are the steps i need to take to make the deal?
  
  thanks to all how have replyed to my post.

• 
  jorge12128th May, 2003

  Wingnut:
  
  Glad to clear things up for you. I was an attorney in my previous life and most of the stuff that I'm read on this subject has never really done a good job of explaining how it works, legally speaking. Happy to know it helped.
  
  I'm with GaryM. Buy John's book (John you can send me that commission check later). Cash is the expert in this field and can better answer your question. Sub 2 is not my bread and butter method but I've used it a couple of times.

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  Wingnut29th May, 2003

  thanks for your help jorge 121, and garym. as soon as i type this i will order john's book. For the last 3 years i have spent most of my time monday - friday at trustee sales. i am just not familiar with the 'subject to' and birddog method, but am learning. thanks again for your help.