Sub 2 With No Trust
Has anyone done a sub 2 with no land trust or anything else. Just contact the lender and tell them you are making the payments, or just start making the payments without contacting the lender at all.
I have heard that the DOS is like an alligator with no teeth. As long as the payments are being made the lenders don't care.
Thanks for any insights!
de51,
Glad to meet you.
Yes, I have done Subject To deals without a trust and I am alive to tell about it.
The DOS is another chapter that I have only heard about happening when someone does not pay the lender or are running a meth lab in their basement and because they do Subject To investing they were arrested.
John $Cash$ Locke
you want to get a quit claim or something, not just notify the lender you are making the payments. In fact, if I had a quit claim and had it recorded I probably wouldn't even bother to notify the lender if I were going to do this the way you are suggesting. All it can do is stir the pot.
John,I agree as long as the payments are being made the bank is unlikely to call the loan(DOS). I have bought properties in my own name using subject-to and have had no problems. As in all l/o,cfd,and other sale methods be very selective in who you deal with.
Quote:
On 2004-04-05 22:14, MichaelChandler wrote:
As in all l/o,cfd,and other sale methods be very selective in who you deal with.
Michael....is there anything specific to watch out for when doing your first few deals?
Hey all,
I had an owner put me on the deed, I had an agreement written up stating the amount of money she would get if the property sold. $1500 over the payoff. and the rest would go to me less the negotiated closing costs I agree to from the offers.
I had total control over the sale of the property, asking price and terms. The reason she did this was because her attorney (who was by the way her power of attorney) was skeptical about my intentions. In the mean time her mortgage was in jeapardy of being in arrears...she only had enough money to pay 1 maybe 2 more pymts.
He claimed he's only looking out for her best interest...ha...it's wasn't his credit that was about to be damaged. She's living in another state paying one mortgage there and trying to pay her mortgage here for a vacant property. So yes, there are many ways to do a Sub to without the use of a trust...it all depends on the mentality of the patient. opps....I mean client.
Hope this helps
Clif
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Always Think Differently From The Masses and Always Believe In Yourself, If you think you can or you think you can't, you're right! [ Edited by pbodys on Date 04/06/2004 ]
There's infinitely more Subject to transactions done without anything else than Subject to's done with the adjunct of some other instrument, such as a trust.
Get the deed. Make the payments on time and with good funds. I like the analogy of "an alligator without teeth". There's still the outside possibility of being "gummed to death".