How Can One Protect The Interests Of A Seller In A Sub 2 Deal?
Hi guys,
I have a deal I am working on that is a Sub 2 deal and I am thinking of wholesaling to another investor.
I really want to make sure that the interests of the seller is protected and that the investor who gets the deal cannot one day decide to stop paying.
What methods can I used to make sure that the seller is protected?
Your response is appreciated. Thanks
[ Edited by PropertyLion on Date 04/18/2008 ]
Give the seller a performance mortgage.
Consult your attorney for specific details.
Quote:
On 2008-04-18 11:57, NewKidInTown3 wrote:
Give the seller a performance mortgage.
Consult your attorney for specific details.
So what are the specifics about this performance mortgage that I give the seller and how does it help to protect the seller against the investor buyer who ends up not making monthly payments?
Do I get a performance mortgage so that if the investor ever stops paying I can get the house back?
Yes, a perf. mtg would basically give YOU and/or Seller the right to foreclose if the sub-to buyer failed to perform as he promises to do.
Thanks this was very informative. All I need now is a copy of a performance mortgage to show my attorney. Its always cheaper when they have something to work from as opposed to creating one from scratch.
Thanks
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