Subto Out Of State?
I am considering selling my personal residence subto and moving out of state. I would use a loan servicing company for payments. Has anyone had any problems with doing a subto out of state? Thanks for any advice.
What are you trying to accomplish by selling the property Sub2? It is possible that a land contract would be better for you in the long run?
Hi Jeff,
I am trying to sell my home as quickly and easily as possible. I am refinancing the equity out so I would only need 15k-20k down. What do you mean by "land contract", I have heard the term "agreement for sale" is that the same?
Thanks,
Kevin
A "Land Contract" or a "Contract for Deed" is essentially an agreement between you and your buyer which keeps the property in your name until the terms of the sale have been met. You charge the full price for your house, and can usually get an appropriate down payment for the property. Many on this site recommend using a third party (Loan Servicing Company) when using this method. A Loan Servicing Company can collect the agreed upon principal and interest payments from your buyer (per the terms of your contract), and pay the underlying loans (The ones in your name) for a small fee. They can provide all parties involved all of the year-end accounting and book-keeping for tax purposes etc. When your buyer fulfills the terms of the contract by paying you and your underlying loans off, they get a deed to the property.
If you use Sub2 as your method to sell your property, you are no longer the property owner from day one. Your buyer gets a deed right away, and all of the financing remains in your name. If something goes bad for them in the future, and the payments don't get paid on time, guess who's credit takes the hit (YOURS). Sub2 is a great way to buy property, but does little to protect you as the seller.
I'd recommend that you always try to use the method that keeps you in the strongest position if anything goes bad with the deal in the future.
Good luck,
Jeff