Seller Relocates, Needs To Purchase New Home!
'Subject2; is defiantly one of the most creative RE technique ever created. However, whenever I put myself in the shoes of the seller, I could not avoid to wonder about the obvious pitfalls of living the property liens in my name, while allowing some "buddy' from Atallachee, to to control it because he finished his no money down course few weeks ago.
If this was not scary enough for you to lose sleep, buying the consecutive property with the mortgage from the first property is still in place, might prove to be almost impossible venture, so I wonder: How does 'subject2' deal works when a seller plans to purchase a new home in another town/state just after relocating. Her credit's fine but she do not have the income to support 2 mortgages. Being new in town doesn't help but as i sad, she got strong job history and the lenght of time in new town would not be the problem. Debt to incomer ratio and curent liabilities are.
Would the paperwork she received form buyer help her out when she fill application for anther mortgage? How can such situation be worked out to sellers satisfaction as well?
This question is asked very often. John Cash probably has it answered in his book which I have not yet been able to afford. Maybe when I get the house payment current I will buy it. I hear it is really a super book. What i have read in the past is that mortgage companies will treat is as a leased property at the worst they will get 75% credit for the income from the payment that is being paid. I have also heard that some lenders will treat it as a sale and will not count that loan against them because it is a sale with a closing statement lots of times and a deed. If done as a trust deal it could even be nothing more than a financial planning move. A lot of the sub2's are done by sellers who have no other choice and will have to rent or move in with theit parents even because they can not afford where they live. It may not be their fault that they can not sell their house any other way, market conditions etc. Really need to look at the whole picture. There are several options available even buying another house sub2 themselves. I bought one sub2 where the seller was 10 grand behind and they just got $144,000 severance pay from Motorola and built their earth shelter home out of pocket.
Good LUCK and HAPPY HOLIDAYS
Hope this helps some
Ted Jr Your friend in GREAT STATE OF TEXAS
omega1,
I recommend that you have a mortgage broker on your team, because any broker worth his salt can get a Subject To seller a new loan for a second house.
Creative people these mortgage brokers. Remember they don't get paid unless they make loans.
John $Cash$ Locke[ Edited by JohnLocke on Date 12/26/2003 ]
John is relentless,
OMEGA you have been CHALLENGED!!
Do you choose to accept it?
[addsig]
I don't know what Omega is on about. But I sure still intend to purchase the real John Locke book once all this holiday nonsense is over.
Ps. Hi All! I've been reading this forum for quite a while, yet this is my first post I believe.....
T
edit: ok I see now, that dude should be k-lined from ebay. But why are you spamming the board with that link.....
[ Edited by TylerD on Date 12/25/2003 ][ Edited by TylerD on Date 12/25/2003 ]
Welcome TylerD...
BTW. there is nothing wrong with lurking for while. There is a wealth of information on this board and it is good to take time to take it all in. At least, you are doing some homework before you jump in and ask questions that have been asked countless times before. That is always appreciated.
When you are ready...post away. There are generally some very helpful people here who are willing to take time to answer your questions.
[ Edited by Rogue on Date 12/26/2003 ]