Need Help Closing “subject-to” Deal
I need assistance closing this “subject-to” deal. I have a distressed owner that is willing to just walk away from his property to avoid foreclose. He is willing to deed me the property, move out and keep the existing mortgage in his name. His property needs a little work and I would rehab it and sell it ASAP. I have already performed a title search and the title is free and clear. When the dead is signed at the title company, should I just add my name to the deed along with the original owners or completely remove the owners name and just add mine. I want to rehab and sell this property within 2 months. I was told that if I removed the owners name from the deed, that I would face seasoning issues when attempting to sell the property retail because my end buyers lender will have issues with me not being on the title for more than 6 months to a year. If I leave the original owners name on the deed and just add mine, the original owner would have been on the deed long enough to avoid seasoning issues. The owner is willing to give me “Power Of Attorney” to do anything I need to sell the house.
Can anyone give me some direction? Am I missing anything? I’ll get the deed done and then the Power of Attorney. What do I do about homeowners insurance for the time I am rehabbing the property?
Thanks,
**Please See My Profile**
ALWAYS purchase title insurance...
You could use a TIC agreement to accomplish the seasoning issue but keep in mind there are a host of lenders who will finance without seasoning...
Seasoning is really an issue with marginal borrowers..
Make sure that your state doesn’t have requirements which you must follow..
From font size in your contract to how many days do you have to allow the seller to back out of the transaction...
Also make sure you pay something to the seller... I would never pay less than 100.00..
Good Luck and congrats on finding a great deal....
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