What Will Happen...
I read an old post on another real estate bulletin board that no one replied to. A guy bought a house subject to, had the deed assigned to him, and then was unable to move the property or make the mortgage payments. He put about $8,000 in the house. At the time of his writing it was going to be foreclosed on because the original sellers did not/could not make the payments either...that's why they sold in the first place. What will happen? I assume the property was forclosed on, but what would happen to the guy who bought the house who got the deed? What liability will he have?
Thanks for anyone knowing the potential outcome of a situation like this.
Terry
If it's written up like most sub. to contracts are then the buyer is responsible for the payments, but it's the sellers credit that will get thrashed. Again, it all depends on how the contracts read.
Hello Concrete,
It would appear that the investor failed to follow some of the rules of effective REI. As with any business, one must have some reserves. They should have had a prespective buyer lined up before the transaction took place. As to the 8k that was spent on repairs, lets just say they will never make that mistake again.
In order to be successful at anything, one must properly prepare for the undertaking.
I hope they will regroup and come back with greater understanding of the market and earn enough money to write-off this lose on their taxes. 8k is a little on the high side to pay for lessons-learned, but not to high to recover and come back strong.
Quote:
They should have had a prespective buyer lined up before the transaction took place.
I must have not been paying good attention, because I haven't seen this point spoken of much. Excellent advice and important step to help new folks who want take action, but be cautious too.
Thanks for the replies. I just felt badly for both parties involved.
Take care,
Terry