Lease Option Question On Paymnent
I have a simple question. I have an appointment with a motivated seller and he likes the idea of the L/O, but once I take possesion of the home do I make payments directly to the seller or to his mortgage company? He has been late on his mortgage on his payments and has forclosed once on another property. I am just scared that if I make payments to the seller that he might use the money for himself and not the mortgage. Thanks for all your input to my questions you all have helped.
oops, typo on the 3rd line" It is worth the risk
should read "Is it worth the risk
My apologies!
Happy Investing
The Seller signs over the Deed to you, and you use the existing financing that is already in place to buy the property (subject-to the existing financing).
[addsig]
Greetings milisquirrel,
The short answer is no. As long as all the appropriate documents are signed and notarized, your seller should not have to be present at closing. If you use a nationwide title and escrow company, they can arrange it for you. Oftentimes they will use a mobile notary that will go to their house, office, or wherever and walk them through the signing process.
Hope this helps.
milisquirrel,
No they do not have to come back. Your closing agent will prepare the documents and closing instructions and just fed ex the package. Then all they do is sign in front of a Notary. It is called a MAILAWAY.
Greetings csfg,
I was just wondering how you never had to get financing on any of pre-foreclosure deals because of subject to.
Response, appreciated.
Thankx
Deed subject to and pay out after the flip
Greetings csfg,
One way might be to go ahead and take it over Sub-To and then just do a cash-out REFI. Obviously, you will need a lender that doesn’t require any title seasoning, but they’re out there. Also, you’ll probably have to explain why you bought it for 273k when FMV is 425K. And depending on how long your subsequent LO is for, you would want to avoid the prepayment penalty, or at least get a soft-prepay.
Just my initial thoughts.