Subject To Funding Question
When puchasing your first deal and assuming the sellers loan, are there usually back payments that you must first catch up on? Can you do some kind of HELOC to catch those up or do you have to put forth your own money. I have not had the funds to get John's book yet but believe me it is coming soon. Rehabing just isn't working for me at the moment I need more money unfortunately.
Thanks Jim
This is the mother of all questions. If there is equity you can take out a mortgage but likely you will have to pull funds from somewhere else.
Jim,
It will depend on the seller's situation whether or not there will be back payments to make up.
There are many ways to make them up. Private money, money partners, credit cards, your cash, get the bank to do a workout with the sellers. The possibilities are many.
Some sellers aren't behind at all. They just want the house to go away. Focus on these if you don't have other means of finding cash right now.
[addsig]
Your not assuming the loan...there is a difference between assumptions and subject to....
Not every situation will be a "you have to make up the back payments." Some cases the payments will be current and you will only need to give them moving money.
And you can try to do a HELOC but if you are behind in payments, taking out a LOC, making the payment higher may not be the best solution. Know the foreclosure process in your area and try to get the payments made up from your buyer. I'm not saying to let the house go into foreclosure, but if they are 2 months behind and the process won't start for another 2 months....you got plenty of time to sell the house.
I heard the longest one has ever held onto a house was 3 weeks. This was LV's number.
But find the money, I wouldn't do a HELOC. ask someone or do the credit card thing as suggested above. make or find a private lender. there is money out there, find it and use. hell, tax return time is around the corner, use that money.