Need Some Advice
Newbie here. My question is: How do you pay the seller for any equity built up in the property if you purchase sub-to at a price higher than the existing mortgage? Do you get a second mortgage? If so, how hard is it to do? The sellar wants cashed out but will probably sub-to if I refinanced in a short period of time. The house needs a few repairs before it meets VA guidelines. I can go VA in a month or so after repairs are made but I want to close now because I'm paying 'rent' for her to hold the house until I can close. Any advice is appreciated. 
Just have the seller give you a second for the difference. I'm not sure that is sounds like you are going to make money on this one? Make sure the numbers are there to fix it up and still make a profit on your end before you do anything. (Figure 10% less than FMV for a fast sale)
I dont believe the seller will hand over the deed with out some cash up front. Not for sure though- I'm not sure how much equity is in the place. As for profit, I'm going to be living there so quick resale profits are not first priority in this case. I'm trying to get the wife close to family because of my military deploy-ments. Main objective is to get it closed quickly to save money. The numbers are: purchase price-116K FMV- (135K-140K) rent until closed - 730/mo. Any other possible solutions? thanks for input.
forgot to mention-total fix up <$1000 [ Edited by oszss on Date 11/26/2003 ]
get a signed contract for sale with 180 days to close. Then rent till you can close. That way you lock in the sale price and have plenty of time to get loan. No need to sub-to here
Good advice on rent until you can fix and close. Maybe get fixup money you spend deducted from purchase price or even as additional earnest money or deposit on the lease. I was going to suggest just lease and do not buy but with rates as low as they are and the market so weak it is a great time to buy. Great move.
Hope this helps some
Ted Jr
Hi oszss,
If you take the property Sub-2, you will be able to start the refi process immediately after your have recorded the deed.
Regarding VA, are sure the you can refi into a VA loan if you already own the house? I dont fully know the restrictions on something like that, but it would be a good thought to look into.
As dgtop said, I would lock up the property via contract and stop paying rent to her. This would give you the fix up money you need to make repairs.
If she insist that you keep paying rent, tell her that you want to move in now! Do you have a credit card that you can get a cash advance on for a temporary bandaid?
BAMZ