Divorce And Subject-To
Hello,
I wanted to get some feedback regarding how to handle divorce situations and subject-to-deals. In working with pre-foreclosre clients, we all frequently come across situations where the homeowners have either recently divorced, or are about to.
In one recent example, I had the seperated spouse sign a quit-claim deed in order to get her off the title, and then work only with one part.
I wanted to get feedback from experienced subject-to investors regarding how you handle these situations. Specifically, how do you avoid the problem of one spouse wanting to back out later, etc.
Thanks,
Jason
the same way!
yep
Sometimes a little cash can help persuade the reluctant party to cooperate.
But as previously posted, I also like to talk directly to BOTH of them (either together, or separately) to explain the proposed solution. If you talk to just one and get the, “I’ll talk to my Ex about this…” response, odds are, the ex will think you’re somehow conspiring against them.
Just my 2 cents.
It seems that the numbers for monthly cash flow are not realistic.
The tax rate is very high for most places on only at 300K home.
I have never paid more than $1200 a year in insurance and usually under $1000
Also your figures to my calculations come in at $2708 PITI which is real high.
[addsig]
PBFerrigan,
My recommendation would be submit this scenario to Cheech and Chong to see if they ever got high enough to dream something like this up.
Also ask them if there is a Bong large enough to get them Dumb Enough.
John $Cash$ Locke
[addsig]
Is this the concept of taking a prop sub-to and selling it for under market value?
Thanks! That was very helpful
NCboater,
How are any of the considerations you expressed in your last comment any different from those in a regular subject to transaction? With the exception of the 20K, which we (at least I believe we do) all agree is too much. Too much for almost any wholesale deal. Lower the price to 3 or 4K if that makes it easier to deal with. Everything else is textbook Subject 2. Less risky than driving on the freeway!