Subject To and Contract for Deed are two ways of purchasing properties.
Subject To investing is where the loan stays in the sellers name, this allows you to become the bank when selling the property. So the loan stays in the name of the seller but the Subject To investor is on title (deed) to the property.
If you purchase on a Contract for Deed the owner of the property holds the deed until you have lived up to the terms of the Contract. The terms would be under what conditions you purchased the property.
So the correct method for a Subject To investor would be to purchase the property Subject To and sell to the purchaser (buyer) on Contract for Deed.
Question: On each of these options, once you have lived up to the contract, say 12 months of payments, would the refi be eaiser than an orig purchase since you would now be "seasoned"?
Also there would be no need for a Down Payment at this time since you "own" the property right? Or is this only with the sub-2?[ Edited by westside28 on Date 07/17/2003 ]
Question: On each of these options, once you have lived up to the contract, say 12 months of payments, would the refi be eaiser than an orig purchase since you would now be "seasoned"?
Answer: If the payments are made on time and you have a record of this, then lenders take this into consideration even people with shaky credit usually have no problem re-financing after a one year period.
Question: Also there would be no need for a Down Payment at this time since you "own" the property right? Or is this only with the sub-2?
Answer: Not having to make a down payment would apply either way as long as the property appraisal comes in correctly, which it normally does. I have my buyers re-finance after two years which is plenty of time for the property to appreciate.
housebyr,
Glad to meet you.
Subject To and Contract for Deed are two ways of purchasing properties.
Subject To investing is where the loan stays in the sellers name, this allows you to become the bank when selling the property. So the loan stays in the name of the seller but the Subject To investor is on title (deed) to the property.
If you purchase on a Contract for Deed the owner of the property holds the deed until you have lived up to the terms of the Contract. The terms would be under what conditions you purchased the property.
So the correct method for a Subject To investor would be to purchase the property Subject To and sell to the purchaser (buyer) on Contract for Deed.
John $Cash$ Locke
Question: On each of these options, once you have lived up to the contract, say 12 months of payments, would the refi be eaiser than an orig purchase since you would now be "seasoned"?
Also there would be no need for a Down Payment at this time since you "own" the property right? Or is this only with the sub-2?[ Edited by westside28 on Date 07/17/2003 ]
John,
You can answer this one better than I can
Westside28,
Question: On each of these options, once you have lived up to the contract, say 12 months of payments, would the refi be eaiser than an orig purchase since you would now be "seasoned"?
Answer: If the payments are made on time and you have a record of this, then lenders take this into consideration even people with shaky credit usually have no problem re-financing after a one year period.
Question: Also there would be no need for a Down Payment at this time since you "own" the property right? Or is this only with the sub-2?
Answer: Not having to make a down payment would apply either way as long as the property appraisal comes in correctly, which it normally does. I have my buyers re-finance after two years which is plenty of time for the property to appreciate.
John $Cash$ Locke