Sub To And The Seller??
Let's say, the seller has a vacant property with 40K equity and maybe 25K left on his mortgage. And not really in trouble with his loan. All current, but really wanting to get "out from under" the house note.
Would sub to work for this situation and what about the equity to the seller? And should the seller even be open to such a deal? In other words, if "you" were in his situation, would you agree to such a deal?
Simple thing would be ask the seller what he wants to do and take it from there. That will give you an idea of how to structure the deal based on what they want to sell for - if he wants to sell.
If there is enough equity assign the deal, sub2 the deal or offer to try and sell the house for him (by having him sign a "power of attorney" giving you the rights to sell)
hoped that works!
Let me turn the tables a little and ask you, IF you were in that position, would YOU accept it? This is an often overlooked question, but if you can answer it honestly, you'll begin to get a lot more deals accepted. The key, of course, is determining what exactly is the situation. And as rcummings said, the only way to do that is to talk with the seller, and ask them what they want from a deal.
Using your figures above, the John Locke classic "U-haul" money approach likely wouldn't work. Even knocking off 20% of the "equity" for conventional selling, there is still about $25K in real equity left. Though situations differ, most would not give away that much equity. They may, however, be open to alternatives, like a seller carryback, profit split, etc. It all depends on the seller's desire.
Roger
Thanks Roger and Rcummings...you answered my questions.
I think I'll go over to John Locke's site and order up that course...because I have a feeling, more times than not, sub to will be what I do.