Question From A First Subject To Investor
My husband and I have enough money on our own home equity line to pay for a pre-forclosure backpayments and moving money for an individual. We do not have the 100k to pay the loan in full but we have the 17k to stop the foreclosure and give him moving money and make the payments until it's sold.
In the contract do I put Under Special Stipulations:
subject to:
Buyer being able to stop the foreclosure
Partner Approval
Buyer may assign this contract to any person or corporation prior to closing (in case the lender makes this due on sale and I have to find an investor with cash)
Seller will net $7,500 when he vacates property
Is that ok to put that the seller will get money when he leaves?? Or should I not put any money into the contract and give him cash in person when he vacates??
Suggestions and thanks I love these forums.. very helpful!!!
housepoor,
Glad to meet you.
From reading your posts I believe you have a dire case of "Information Overload." You are trying to use bits and pieces from reading the forums to do a Subject To deal. This is how your first deal can be your last deal in the industry.
If what I am reading is right you are going to make up back payments of $17K plus give the seller $7.5K for his equity?
What is the value of the house, what is the existing mortgage, what will it take to bring the mortgage current. Last but not least when putting up this type of money how much is your anticipated ROI.
Then if you do a Purchase Agreement, you will need a preliminary title search, plus other due diligence proceedures (like bringing the payments current, etc.) to keep you out of harms way.
Probably 20 or more questions I would want the answers to before I personnaly would try to answer your post with sound advice.
John $Cash$ Locke
[addsig]
Curious about REI and I've been doing some research here and there. I respect Johns professional opinion and I am a couple hundred shy of buying his Subject To course.
From what it sounds like, I can't understand why you would want to shell out close to 24k for this deal. I was under the assumption that Subject To Investing was not this pricey.
My $0.02
EMGSTUDIOS,
Glad to meet you.
When I shell out $24K it will be for a whole bunch of houses done the Subject To way.
My point here was why would anyone put out that kind of money unless it was a super deal and I mean a super deal with plenty of comma's and zero's coming back their way!
John $Cash$ Locke
[addsig]
Best way to handle the prospect of assignment is to simply put, as buyer, "(your name) or assigns." If asked, just tell em your lawyer tells you to put it there, in case you're able to resell the house quickly.
Yes, your outlay sounds high, but if you have it and there's enough in the deal for you--hopefully you can sell it for a lot more--it still could be a good deal. We can't all (or always) find the low money down deals.
Since you like info, research this well before you go in, though. Maricopa County has an awesome website where you can view assessed values, comps, and even recorded documents so you're relatively sure you have some good profits ahead. I'd love to have all this info online up here where I live (I invest some down there too). Good luck!