Why 2 Years?
Just noticed in another post that you don't promise a seller on a sub2 when he/she will have the loan out of their name but that it normally takes 2 years.
Question: During this 2yr time period, you are making the monthlys, so why is it not in your best interest to find a buyer and cash out immediately?
certainly I am missing something!
Quote:
On 2003-08-22 01:25, iline5150 wrote:
Just noticed in another post that you don't promise a seller on a sub2 when he/she will have the loan out of their name but that it normally takes 2 years.
Question: During this 2yr time period, you are making the monthlys, so why is it not in your best interest to find a buyer and cash out immediately?
certainly I am missing something!
The reason for the two years is that it makes it easier for you to find a buyer.
What I mean by this is lets say that a family is looking to buy a house but they don't have the best of credit so they are having a hard time finding a home that meets their needs that they are able to get a loan for.
Well with the two years and a LSC the family has the chance to improve their credit and get teh loan that they need for the house.
Granted you don't have to have it last for 2 years, you have say a year or a year and a half or what ever you and the buyer can agree to.
It really depends on your equity spread and when you think you can get your buyers qualified for a loan. If you have a big equity spread then I would want to cash out as soon as possible. If it is small then I would want to wait and cash in on the future equity. Depends on the deal.
Tom