Not Behind On Payments
I was wondering, those of you that buy homes Sub2, are you making up back payments on most of these or are you having success finding homes that have current mortgages?
Seems like preforeclosures would go for Sub2 but would "regular" distressed sellers go for it, say... in my area they are about to close Fannie May and 11 Dominick Grocery stores, I'm sure these people are worried if the employee of one these places are the primary bread winner. Would they be interested in Sub2 even though their not behind YET?
Thanks for any response.
Stewart(Chicago)
Hi Stewart,
Absolutely.
There are many reasons to motivate a person to sell besides facing a potential foreclosure.
Job transfer and moving to another area are at the top of the list.
You can provide a great service to these people if you can help them. Just remember to make sure it is a win-win situation for all.
Best of luck
John (LV)
I do preforclosures subj2. Then I contact the lender and try to get a workout. If not, I reinstate.
Then I sell the house on agreement for deed or lease option, depending on how much money I need down to reinstate the loan.
I don't put money out for very long and usually get the buyers money to cure before I have to. That way there is no money out of pocket.
I think people are Sub2 either way, making up back payments or having loan current. The ideal way is to have the loan current, less out of pocket for you. It depends on the numbers on a case by case basis. Motivated sellers are the key though.
My first sub2 was from a caller who knew that she'd not be able to make the next payment, and didn't want to ruin her credit. She wanted $700 for her appliances: washer, dryer, dishwasher, microwave...really, moving money. She already had an apartment picked out, had found someone to take the dog, and was ready to move when she called me. She'd had a lot of late payments, but no missed payments.
It's the compelling reasons for selling within a finite time period. Add to that formula, your solution solviing abilities. That's what makes for a good "subject to" technique.
The reasons are many. Divorce, unemployment, financial reverses, illness, relocation,etc.etc.
Hi Stewart,
Of course most of the homes we buy are having some problems whether it is physical problems or financial. Of course we factor this in when buying.
Whether they are behind in payments or defferred maint. issues, if it is a deal we buy it. Just figure it into the cost.
WilliamGA
William Tingle