Assistance With Subject To
I have a few individuals in pre foreclosure and am looking for some strategies with subject to. Can anyone give advice. I know it is not good to have the homeowner stay due to obvious reasons but I just see $$ being left on the table. Anyone??
Please clarify your situation... I have no idea what situations that these people are in.
Usually it's not a good idea to leave the current people in the property. THey fell behind on payments before - what's to say they aren't going to do it again?!?
Give us some details and we can help you out!
Good Luck!
[addsig]
For instance I have a client in foreclosure. He has 2 loans. His first is current and owes about 109k. His second is late and threatening to sell the property. He owes about 20-30k on the loan. He is behind about 10k with attorneys fees and all foreclosure costs. I can bring his loan current and would like to take subject to but then I am left with the note and dont want to be strapped with another payment. He is looking to sell once he resolves this situation but how can I profit. The home is appraised for around 192k.
Help??
Thanks All!
Take prop subto:
1. Make backpmts of $10K
2. Sell for $192K conventionally (if preferred)
3. Deduct:
1st Loan - 109K
2nd Loan - 30K
Arrears - 10K
Realtor, closing, etc. - 19K
4. $24K profit to split as you wish. For putting up the $10K, I wouldnt do for any less than $15K.
Also, not sure what problems this may present in title seasoning. I have yet to sell through a realtor.
Happy investing! :-D