Escrow Agent Wants DOS Clause Disclosure
I have just relocated to Washington State, from Washington, DC. Looks like it only took my marketing 1 week to get me a qualified lead, which I am closing tomorrow.
I have a found an escrow co. that will close sub2 deals. However, the closer has asked me for a document to be signed by both the seller and myself that states that we understand what the DOS clause is, and what the ramifications of it are.
Does anyone have a boiler plate version of such a disclosure, that is investor friendly?
Thanks in advance,
yep I sure do....email me and I will send it as it is a long doc.
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If the Home owner gives you a properly signed and Notarized Deed conveying all his Right, Title and Interest to you, You have now taken the property "Subject to" all the loans, liens & taxes. All of the Loans, Leins & taxes are still encumbering the Property. For you to convey or encumber the property further, you will have to (Probably) pay off anything the new lender demands.
What are the terms of your contract for deed. I believe they are typically like a traditional mortgage - at a certain percentage for a number of years. Then at the end of the CFD the CFD buyer has totally paid for the house and your sign over the deed to them. I do not think that you need a title company. But the bigger question is why are you concerned about what the CFD buyer does after he owns the house? There is something here that I am not understanding.
Let me clarify,
Say I sell on a 2 year CFD with a baloon due. This is intended to allow the buyer time to build their credit so they can refinance by the end of the 2 year CFD.
When they do obtain financing, what does the rest of the transaction look like?
Lenders typically treat a CFD as a refi (far more lenders than will finance a L/O).
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On my last refi the buyer (CFD) refi early (10 months) their mortgage company called a title company who called me for pay-off (balloon) and copy of contact. My contact states the CFD buyer pays all closing cost. We meet at the house I signed a few papers and my check was ready. Very easy however may be different for different banks.