Sub To With Little Money (Nerves)!
I just had a deal all but fall apart so I am again on the hunt. I had a deal all but fall into my lap today and I am curious as how to proceed. I ordered Johns Course today (FINALLY!!). I called a women today that is unfortunately going through a hairy divorce. Her husband is a Marine along with most of us around here and he owns the property. Single mom 3 kids $958 a month is too much. She is behind 2 months on the mortgage wants out as soon as possible. How can I begin to structure this deal before I get Johns course.
Can I assume the loan without making up the back payments?
She needs moving money she has none.
I have about $1200 to work with.
The loan is a VA secured loan.
House is worth 120k loan is at 115k.
I could probably L/O for 5k 2 years and be fine but what is it takes 3 months to do that I cannot make those payments unless I move in myself.
Jim [ Edited by killenjw on Date 01/25/2004 ]
She will be checking with the VA tomorrow inorder to add the payments missed back into the mortgage. She did mention that she was farther behind then she originally led me to believe so I am thinking there is more to it. She is a detective with the Jacksonville Police Department. I have a meeting set up for Thursday in order to discuss the big details. I am curious as to whether or not I should live in the house for a while or if I should immediately look for a buyer. The house has roughly 13k worth of equity in it. How long does it usually take to get a L/O or sell the house. It is in the most prestigous area in Jacksonville and it is only 4 years old. If you can't already tell I am pretty nervous about the money factor. I can't make the mortgage payment if it doesn't flip.
Jim
I have thought of 2 ways to market the property that I am looking at. I have a question though. Can you owner finance a sub to deal? I thought that 12k down 110k financed at 8% would put the payments at around 1050 a month. The other is a L/O with 5k down and 1050 a month for 24 months with the option to purchase for 110k at the end of the lease. Any feed back is appreciated.
Jim
The VA loan may be assumable. If thats the case then you don't need to sub-2, you can just assume it.
Will the VA let me assume it if I don't qualify for a loan that size? Plus my credit is not the greatest ever recorded if you know what I mean.
Jim
Jim,
You would still have to qualify for the loan. If you do, The VA will essentially co-sign or guarantee the loan 80% with the lender. This asurance can make it a bit easier to qualify, but you still have to qualiffy.
In Subject 2, you only have to qualify as the person with enough personality and skill to have the seller want to do the deal with you.
Don't tie up your personal credit unless you have to. You might want to use that later.