"No-Qualify No Bank" Type Buyers
A potentail sub-2 seller asked me about my plans after he deeds m the house and I
told him that I will find buyers who can not qualify for bank loan. He asked why can't
they qualify? and how would I know they can take care of my payment if they can't even qualify for a laon.
So my question is :
when finding "No-Qualify No Bank" type buyers who can take ove the sub-2 deal,
we need to make sure that they can pay the monthly installment. What are some
of the criterias that makes a buyers not be able to get a Bank Loan yet they have
enough money down and can take over the sub-2 deal?
thanks, Josh
Josh,
I am sure John Locke will give his his experiences, but here are mine. Assume that you have a buyer with a good job, but they have-
Ding on credit report (an older item)
Bankruptcy (4 years ago, but still has a great job)
Limited credit history
The list goes on. There is a single Mom in my city who is going to buy a property L/O from me. She makes $53,000. per year, but has a problem with a product she bought on her CC 2 years ago. She refuses to pay because she wanted to return the product. She now has a black mark on her credit report.....but she has the $$$$$.
For your seller, I think that divorce is the easiest way to explain how normal people with good jobs have terrible credit and can't get a loan.
You could just as easily find someone with good credit, and nothing to put down, etc. The bottom line is this. Tell them that the home doesn't have as much equity in it as you like to see in your deals. Your plan is to put someone in the house that will buy it in a couple of years when the house has appreciated enough to be as profitable as you like. The way you presented it, I would be concerned as well. You specialize in finding solutions for people, not educating sellers about Sub2.
Quote:
You specialize in finding solutions for people, not educating sellers about Sub2.
Good point