subject to question - sellers want another house
I just ordered my manual, so this question may be answered in there, but I wanted to get a head start with this question on the forum:
In a subject to deal, if the sellers want another house that they are able to afford, they won't be able to do it because they already have a mortgage in their name on the house you are getting from them, right? I am new to REI, but I remember when I bought my existing home, I had to fax documented proof to my new lender that I closed on my old house - I forget the name of the document, but I thought it was proof that the old house was paid off. For this reason, I had to space my closing dates by a day or two so they could process this document. How is this handled in Subject To deals for the sellers?
Thanks for any help you can provide!
Jason
Hey Jason,
I had a similar Q about the sellers being able to obtain another loan if the loan stays in their name and a reply came back as:
[quote]
On 2003-04-28 19:13, JohnLocke wrote:
pbodys,
It has never been a draw back for a Seller to get a new loan for another property, even though they sell you the house 'Subject To'.
Any Mortgage Broker worth his salt can obtain financing for your Seller. You should have one on your Team by the way. He can give you a generic letter stating that a Seller can obtain financing for a new property even with an existing property loan, this letter will probably contain serveral methods.
It will eventually boil down to the Sellers FICO score and Debt to Income ratio. So the Mortgage Broker has various methods to get the loan approved depending on what the lender requires.
Keep this letter with you and if your Seller asks this question, show them the letter which will explain how this is accomplished and offer to introduce them to your Broker.
John $Cash$ Locke
End Quote:
Hope this helps
Clif
P.S. Hey everyone, got my mojo back, I should be called waaaay_motivated [ Edited by pbodys on Date 05/16/2003 ]
jasonspencer,
As part of your team you will need a Mortgage Broker, they have more ways to get a loan for someone with two houses than cats have kittens.
You will find this question on the Subto board, basically some lenders require different forms, some a HUD-1 others just showing the Contract for Deed, Subject To has never stopped a seller or anyone from getting another loan.
Jason the first thing you learn that I teach is get conventional out of your mind we are creative animals by nature. What you did in selling your property has nothing to do with how it can be done creatively and by the way legallly.
So throw the conventional thinking out the window, until you do you will will be fighting it in your mind because that is the only place it is, conventional thinking does not apply to what we do.
Conventional thinking is probably the number one cause of someone not starting their creative real estate investing career, when you think about it.
Welcome on board the Cash Now team.
John $Cash$ Locke
pbodys,
Clif, thank you I knew I heard what I said somewhere.
I still owe you an e-mail I have not forgotten, just taking a few to check a few things.
John $Cash$ Locke
Never doutbted you for a second John, I know you're doing your thing for me. Cause' that's also what you do...
Your main student
Clif
Thanks, John and pdbodys. Appreciate the fast response. This makes sense. I figured there was something creative that could be done to help out the seller. Subject To definitely seems like a win-win for all 3 parties.
Excellent post/thread.
Great question and answers. Enlightening for this rook.
Conventional? Don't know the meaning of the word.
Thanks.
Don
great topic ... my question is also answered .... great forum.
thanks alot
I live in california and I have 1 room and board where we feed 3 meal and live in. now we won to expan to appartment complex but need a investor to invest and need some advice. thank cromer