If you purchase the prop. sub2 and resell to new buyer to get you cash out , how does this affect the old sellers ability to qualify for a future loan of their own for a new home?
sorry, I phrased the question incorrectly, my question is can you still advertise as non qualifying even though the new buyer will have to qualify to cash you out? thanks in advance.
as long as their mortgage is still if effect, and in their name, it will show up on their credit report. If you resel this property this way, make sure that you haven't made any promises with respect to getting their loan paid off if/when you sell or you would be committing fraud. You can do so much with the property, but my goal would be to eliminate the original financing by making your buyers bring new financing to the table. even if it takes a couple of years in a Lease/Option to get them the down payment needed, or time to get their credit straightened out.
The loan remains in place. You later sell on a contract for deed or installment contract with a 2-3 year balloon at which point you are cashed out and the underlying mortgage is paid.
Well since it know longer affects there debt ration since the loan is paid off it will help a great deal since its off there liability side.
sorry, I phrased the question incorrectly, my question is can you still advertise as non qualifying even though the new buyer will have to qualify to cash you out? thanks in advance.
as long as their mortgage is still if effect, and in their name, it will show up on their credit report. If you resel this property this way, make sure that you haven't made any promises with respect to getting their loan paid off if/when you sell or you would be committing fraud. You can do so much with the property, but my goal would be to eliminate the original financing by making your buyers bring new financing to the table. even if it takes a couple of years in a Lease/Option to get them the down payment needed, or time to get their credit straightened out.
The loan remains in place. You later sell on a contract for deed or installment contract with a 2-3 year balloon at which point you are cashed out and the underlying mortgage is paid.
J