Need Some Information About A House I Am Going To Buy.
Hello everyone, I am the new guy on the block here and have a question for some of you!
I will try to give the short version of the story.
I was notified by a home owner (friend)who no longer lives in TN. His job had an opening in FL. which is where he was origanily from. He had 2 weeks to get to FL. and get settled for his new job.
Home is 12 years old and current market value is 140K, But he cannot aquire financing on the new house he wants due to his current debt ratio. Bank says sell this house and they will finance new house, So im told.
He called me and said I could have it for pay-off $116,500 I would like to aquire this house so that I can have a place for my out of state family that comes to visit , Kinda like a guest house. Will also be a place that my kids can rent when they go off to college. (Maybe
:-D )
What are the next steps to take since there is no agent involed? First time I have bought a home without a REA. There will not be any financing need, I will be paying the mortage company directly.
You want to take over the property in a Subject to deal. Meaning that you will buy the property for the remaining balance of the loan and subject to that financing staying in place.
I am not an expert in this way of buying, but there is a free contract on this website. Go to the bottom of the page and go to Freebies, then Real Estate forms and look for the Subject to Contract.
You need to get the following:
1. verification of pay-off amount and terms of any and all mortgages.
2. have a title search completed to ensure there are no outstanding liens for taxes or judgments
3. Get a quitclaim document signed by the seller to move the property into your name. My own opinion I would have the seller quit claim it into an LLC and then buy the shares and debt from him for $5.00.
You might want to post this in the subject to forum also.
Hope this gets you started and Good Luck.
if you take the prop. sub2 your bud may not be able to acquire a loan in fl. if he is planning to buy a home there. when you sub2 the previous owner is still responsible for the loan............km
I am sorry, I may not have made my point to clear,
Baring the house passes its home inspection, I am looking for solid/no problems with foundation and or structure, no termites and roof still good for 10 more years. I will take the house. I will not nit pick it/him do death. on a scale of 1-10 the house is a 9. Very clean, very orginized person.
In referance to the financing, I will be paying cash. I will pay off what he owes to the mortage company only. He has already paid the property taxes for the year. I will not need to aquire any financing from banks or local lenders.
Hope this helps. Thanks again.