Sub 2 What Ifs?
Trying to get a handle on the "what ifs" of a subject to aquisition:
Distressed seller quit claims the home to me subject to the existing mortgage.
Now:
What if - I have the home inspected and find out about structural damage that puts the FMV well below what I had thought
What if - I do a title search and find out the seller neglected to mention the 2nd, 3rd, HELOC, etc
Or what if for any other reason it appears as thought the deal was a bad move on my part? Do you all (succesfull investors) do all of this due diligence before ever sitting down at the kitchen table with the seller?
Do I just stop making payments and let the seller deal with his loans and the consequences of my failure to make the payments? Do I have any liability as the legal owner of the property (for instance, the property taxes) or any obligation (legal or otherwise) to the seller?
Do I just never record the deed transfer and pretend it never happened?
You buy it subject to the existing mortgage and subjest to a thorough inspection. If it passes inspection and you miss something, it is your moral and ethical responsibility to be man enough to handle the problem at your expense. This isn't a game, and you should treat people the way you would like to be treated. You are supposed to be the professional.
Good Luck,
Shawn(OH)
solarskier,
Glad to meet you.
"What if" you don't know how to correctly to a Subject To deal, would you still do it?
First you do not do have property transfered to you with a Quit Claim Deed.
You can do your due diligence after you sign a Buy Offer and Acceptance Agreement, if everyting does not pan out according to what the seller stated then there is no deal.
If you think sitting at the kitchen table and signing all the paperwork is the way to do a deal then someone instructed you improperly if you haven't done your due dligence beforehand.
It is difficult to answer "what if" questions, when the basic fundamentals of a Subject To deal are missing.
John $Cash$ Locke
Hello solarskier:
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John also offers a 10 Times Cost Guarantee:
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Happy Holidays,
Marcus
Solarskier,
Get the house under contract, at this point, you complete due diligence. If due diligence checks out, you do your closing.
You can close with an attorney or at the kitchen table, whichever makes no difference. If you are experienced enough to handle you own you can do so.
Get the house under contract first. Check it out and complete your closing later. If you don't like the results of your investigation, renegotiate or don't buy. If you fail to uncover something in your investigation and do close, live with it.
William Tingle
WilliamGA