And Another Question
If the seller you are about to take over their home subject to, asks..."well what if I apply for a loan for something later, and the creditor asks about the mortgage on my home...do I say it's sold...what am I supposed to say?"
This would probably happen if the seller was trying to buy a house a year later or something...but has this question ever came up? How do you address it?
JB
[addsig]
JB:
Basically, your seller can tell the new lender that he is having the property "managed" by you. Here are some answers from John(LV) on the Sub2 forum. He says to find out what the new lenders want to know and give it to them:
- Some lenders want to see the Deed transferring the property into the buyer's name (You) so send them a copy.
- Some lenders want to see the other paperwork associated with the sale so send them a copy.
- Some lenders want a HUD 1 form. We don't normally use it but if the lender wants one then just fill it out and send the lender one.
- My whole point is that this is no big deal. Just send the lender whatever they want and your seller will have no problem.
- Lenders want to lend and don't get paid until the loan is complete so they will do whatever is necessary to get the job done. This includes working with you showing that payments have been made on the underlying loan through the loan servicing company.
Another thing mentioned is that you can HELP them by introducing them to a lender/mortgage broker that's on your "team" to help him get financed for his new property. That way you can explain to the broker what's going on and have them hunt up the appropriate loan.
Andy