Subject To On A Short Sale With A L/O On A Foreclosure
Hi All,
I am working on a house that is being foreclosed. I managed to negotiate the 2nd and 3rd from about $70k combined down to $10.5k combined. The house is worth about $220k and the first is for $133k + 15k arrears. I tried negotiating with the first but they don't seem to want to play, plus I need to get some more docs ready for them and I have less than 2 weeks.
Now the current owners are good folks who fell on hard times so I'm letting them stay in the house with a L/P for three years and positive cash flow. And I'm giving them as an incentive a discount on the re-purchase price relative to today's FMV plus I'm giving them all the apprecition.
Since I probably won't be able to stop the sale, I won't have enough time to get financing, which leaves me with two chices:
1) Do some kind of hybrid Subject To and L/O
2) Find a short term investor.
I probably can do the 2nd choice without much problems but I've never done a Subject To and was wondering what kind of advice I would get on this matter. If you think that the Subject To is the best way to proceed, what would you advise would be my steps here?
Oh, and do you think I posted this question in the right forum? <IMG SRC="images/forum/smilies/icon_lol.gif"> [ Edited by doronmw on Date 09/09/2003 ]
If you pay th 2nd and 3rd , and take over the mortgage payments for the buyers with the loan in there name and they are ok with paying you mo. cash flow with there option
I would wonder how that would look in court if they brought you in for any reason????????
If all that makes sense the first will be up to date.
With or without limited time, I would get John Cash Lock's sub-to book. Your research will be over all the documents are in there for local review[ Edited by DavidBrowne on Date 09/09/2003 ]