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Question Regarding Sub2

reinvest profile photo
  • Wednesday, April 21, 2004 @ 07:50 AM EDT
  • 6 Comments

Hello All,

I've been doing a lot of reading on Sub2 as well as some success stories. What I don't get is how do you get sellers to agree to this? What's the best thing to say? I know they must be motivated, but people will actually deed their property too you while leaving the loan in their name?

I figured I'd get the opinions from the guru's here. Thanks

Comments(6)

  • no photo
    samedwin20th April, 2004

    Yep, they sure will.
    But don't put it in those terms...
    Tell them you become responsible for their payments when you purchase the house. Legally this isn't true, but ethically it is.
    Sam

  • no photo
    mattfish1120th April, 2004

    My advice to you is purchase the John Locke Sub To Manual. This will give you very specific scripts, paperwork, and information for you to use while giving your pitch to possible sellers... Its well worth the money!!

    Good Luck!
    Matty Kling

  • DaveT
    DaveT20th April, 2004

    Quote:Tell them you become responsible for their payments when you purchase the house. Legally this isn't true, but ethically it is.Sam,

    If you believe this then consult an attorney quickly before you do any more Sub2 deals.

    While you do not have any liability to the lender, you have entered into a contract with the seller to take over the mortgage payments. You can be sued by the seller if you breach your contract.

  • no photo
    reinvest20th April, 2004

    Hey,

    Thanks for the replies. But suppose someone is asking 140,000 for there house and they have 110,000 mortgage on it. If I take it Sub2 and start paying on the mortgage what about the other 30,000. Won't they want the rest of what they're asking or am I offer to pay only the loan balance + John Locke's "U-haul" money.

    How much is John's book?

    Thanks all

  • DaveT
    DaveT20th April, 2004

    Someone may be asking 140K with a 110K mortgage balance. Your offer is to take over the mortgage payments only. U-haul money is an additional incentive for the cash strapped and highly motivated seller. If they accept, then they forfeit their equity.

    Check out legioncat's post at this link to see the motivation level I am talking about. http://www.thecreativeinvestor.com/ViewTopic26212-18-1.html

  • no photo
    reinvest21st April, 2004

    Thanks Dave,

    So I only take over the payments of the mortgage and give U-haul money. Then does he sign over a Warrenty Deed or a Quit Claim Deed or does it not matter. Is there any other paperwork needed? Purchase and Sale, Auth to Release etc. that I should be aware of?

    Thanks

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