Lawyer Blocking Sub2
Seller agreed to a sub2 with the clauses that we use a loan servicing company and agree to obtain new financing within 3 years.
However, as expected, her lawyer is not comfortable with that. He's "not even sure it's legal." He prefers the seller to carry financing with a little money down. It's still a good deal even with those terms, but straight sub2 is preferable because it would be no money down.
This would be my first deal, so I don't want to talk to her lawyer on the phone as he could probably talk legal circles around me.
Is there any way to salvage the Sub2?
(please don't reply "Buy $Cash$'s manual." I already ordered it and I'm waiting for it in the mail!)
How desparate is the seller? In the end, it is their choice so talk to the seller and be completely honest and address every question that they have.
How did you find the deal and what is the seller's situation? This may help us help you.
iglooman
Keep to your guns. At worst case maybe put some money in escrow if you default on the payments if it is that good of a deal. If not push it, or walk away.
Thanks for the replies.
Seller's father lived in a condo, but has since moved out of town. We put fliers on the doorknobs, a neighbor contacted us saying he knew someone who wanted to sell. Seller owns the property but lives 3000 miles away. She is somewhat motivated in the fact that she doesn't want to sit on a vacant property. However, the units are currently undergoing renovation to the exterior (and property values should see a nice pop) and she is aware of this so doesn't want to give it away too easily either.
I'll try the escrow, maybe try a letter of credit (anyone ever try this?). If not, the new note I get will be lower interest rate than the one I would be assuming sub2 (7%), and total down should still be under $2k not including closing costs.
Thanks again guys and I welcome any other creative ideas you may have!
ndister
You will find I recommend having your paperwork reviewed by an attorney this is a two fold purpose.
1. That your paperwork is state specific instead of generic.
2. Maybe just as important when you find an attorney that reviews your paperwork you have also found one that understands Subject To investing.
Usually the first thing out of an attorneys mouth is "is it legal" when they have no comprehention about creative real estate investing.
Here is how I solved the "I need my attorney to review the paperwork" .
I reply, "Mrs. Seller, I have had the top real estate attorney in (state) review my paperwork, I am sure your "real estate attorney" knows mine". "Why don't I have my attorney call yours, so that we can complete this transaction for everyone's benefit".
I doubt that the vast majority of sellers have a true real estate attorney. They may have one who practices in an area unrelated to real estate, which is most likely.
9 times out of 10 the way I explained it stops the seller in their tracks, if it doesn't you are still covered.
John $Cash$ Locke
John,
How can you say this if you have not actually done this? Are you saying you can do it after the fact if they call you on it?
gold,
Nowhere in my post did I say do this after the fact.
My open line was:
You will find I recommend having your paperwork reviewed by an attorney this is a two fold purpose.
I was explaning how to handle the problem in the future, however the poster could find a REI attorney to call this persons attorney and bring them up to date on a Subject To deal. This would be after the fact, but would work.
John $Cash$ Locke
Yes, John, I agree. It is best to have a good REALTOR AND a good RE attorney. We certainly can't bee too cautious when it come to REI.
Quote:
On 2003-08-27 14:45, gold wrote:
Yes, John, I agree. It is best to have a good REALTOR AND a good RE attorney. We certainly can't bee too cautious when it come to REI. <IMG SRC="images/forum/smilies/icon_wink.gif">
I think I missed something. Where did anyone agree that it is best to have a good REALTOR And a good RE attorney. I caught the part about the Attorney just fine. Sorry Gold. While I agree that good Realtors have a place in REI, I don't find them particularly useful when doing "Subject To" Investing