Subject To And Actual Owner And Rights
As a buyer, is it correct that you become the OWNER (100%) when the seller transfer the deed to you. Then you have the full rights to do anything - refinance, rent it out, lease, put in trust etc.
I read from somewhere that a buyer is not 100% owner as the mortage is still under the seller. Please clarify.
Thanks
The person with the deed is the owner and can do whatever with it.
The mortgage company still has some claims to the property as they still have a mortgage. You can't tear down the place with plans to rebuild, for example.
As far as the previous owner--they have zero claim to the property once title has transfered, from what I understand.
I am not an attorney so you should consult competent legal advise.
jamesCA,
Glad to meet you.
If you have the deed in your name or entities name you own the property 100% and do with it as you will.
It still has an underlying loan which must be paid on or paid off when the time comes, the loan is on the property as security for the lender.
John $Cash$ Locke
[addsig]
how do I go about asking the motivated seller to transfer the deed to my name? through title company?
Also, not sure why the seller agree to transfer the deed but keep the mortgage under his name.
do I need to put together a sale contract to agree to buy the property subject to first mortgage before the seller transfer the title?
thanks.
idandte,
Glad to meet you.
I found that begging with a slight tear in my eye worked wonders on the seller in getting the deed.
The paperwork was easy, I just used some paper towels from the kitchen and it said "I will give you $10 dollars and you give me your house."
I am probably over simplifying the process, as I really used a scripted presentation to get the deed and my paperwork is state specific and attorney approved, so to really answer your question it goes into much more depth than a post can handle.
I will tell you a seller will give you the deed and leave the loan in their name for many reasons the main one is they are in pain and you provide the cure to their pain.
John $Cash$ Locke
[addsig]
John Locke,
Thanks for your advise and humor!
I find Sub2 appealing as a beggining investor, also try to do simple bird dog in my local here in Chino Hills - San Bernardino/Riverside/LA , CA.
I probably need to get a hold of your manual and other books to be well informed and confident.
Cheers,
James