Why 2 Years?

Just noticed in another post that you don't promise a seller on a sub2 when he/she will have the loan out of their name but that it normally takes 2 years.

Question: During this 2yr time period, you are making the monthlys, so why is it not in your best interest to find a buyer and cash out immediately?

certainly I am missing something!

Comments(2)

  • zarathros22nd August, 2003

    Quote:
    On 2003-08-22 01:25, iline5150 wrote:
    Just noticed in another post that you don't promise a seller on a sub2 when he/she will have the loan out of their name but that it normally takes 2 years.

    Question: During this 2yr time period, you are making the monthlys, so why is it not in your best interest to find a buyer and cash out immediately?

    certainly I am missing something!




    The reason for the two years is that it makes it easier for you to find a buyer.

    What I mean by this is lets say that a family is looking to buy a house but they don't have the best of credit so they are having a hard time finding a home that meets their needs that they are able to get a loan for.

    Well with the two years and a LSC the family has the chance to improve their credit and get teh loan that they need for the house.

    Granted you don't have to have it last for 2 years, you have say a year or a year and a half or what ever you and the buyer can agree to.

  • tbelknap22nd August, 2003

    It really depends on your equity spread and when you think you can get your buyers qualified for a loan. If you have a big equity spread then I would want to cash out as soon as possible. If it is small then I would want to wait and cash in on the future equity. Depends on the deal.


    Tom

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