Yet Another DOS Question
Hello, I am new to Subject To investing. I have a few questions and would appreciate anyone helping me out: 1. If the lender is stubborn enough to exercise the Due-On-Sale clause and if I decided to walk away (say a year after the sale), what are other consequences besides the home being foreclosed? 2. How would I take care of my tenant buyer who has signed a 3 year lease with option to buy and moved in for a year already? 3. How would I take care of my seller? 4. Would it hurt my credit or the seller's? You can probably say that I am an analysis freak, but I just got to know. Thanks, Joe :-S
Comments(0)
This one is simple.
You dont walk away!! You have an obligation. Dont do any sub2 deal that you cannot back one hundred percent. This is a business not a deal of convienence or a hobby that you can put down when you are bored or get in a jam.
I am disappointed to see that you think that way.[ Edited by WheelerDealer on Date 02/14/2004 ]
Absolutely right.
In fact, if you did just walk, I'd bet you're going to be getting sued by the L/O tenant/buyer whose rights have just been walked on by you.
You made a deal with the L/O buyer to sell him/her certain rights and you're now welching on those rights.
I'm in the middle of a deal just like this, where the seller didn't keep up their loan payments, but sold on L/O, taking a pretty hefty option payment upfront, and now the RE is being foreclosed...the sellers are hiding from the buyer, the buyer isn't paying, and the property is going to auction in a couple of weeks...in short a mell of a hess!
So you're not gonna be getting any encouragement from the experienced on this board to just leave.
Do so at your peril.
Thanks for the great replies.
Just to clarify, I don't intend to walk. I intend to be in business and keep my obligations. I am just learning about the business and thought I'd ask.
I apologize to you for sounding accusatory...just speaking hypothetically, and not intending to condemn you personally !
[ Edited by DaveT on Date 02/14/2004 ]
Yes you would be the guy in the middle getting sued by both sides. Just to top it off you may also hear from the Attorney General's office. This is a scenario where everyone would lose.
Thanks again. This is definitely something not to do!