Reverse Flip Terminology
Can anyone help with the terminology to use in completing a addedum on a subject to contract that would "reverse flip" the property back to the seller.
I want to do this to give him some "security" in case I default.
reverse flip is a new one on me. What exactly are you trying to accomplish?
Roger
Basically a reverse flip is only terminology to put in the letter of offer ;; that in case I default on a payment the title will revert back to the previous owner.
REALLY just to make the seller feel more secure. I have no intention of defaulting. Means I really have no way to lose on the deal
What you're trying to do then is not take the property 'subject to' but let the owner do the financing. In order to do that, you'll have to have a deed of trust and a promissary note detailing the full amount loaned and terms of default and options to foreclose.
You'll basically have the same outcome of a subject to, but alot more paperwork. Wouldn't do it without an attorney to CYA for you.
Roger
I have already had him sign a warranty deed and a CYA letter. He has sign my puchase and Sale agreement and wants to add an addedum to this regard. Would this still not be a subjec to deal since I have his payment book?
Quote:
Can anyone help with the terminology to use in completing a addedum on a subject to contract that would "reverse flip" the property back to the seller.
I want to do this to give him some "security" in case I default.
dwierman,
What "problem" are you trying to solve? Is the seller raising an objection about deeding you the property while still retaining liability for the mortgage note -- then having no recourse in case you default?
If so, this is precisely what a performance mortgage can address. You give the seller a second "mortgage" that simply states that if you default on the first mortgage note, the seller may foreclose to regain title to the property.
When recorded, this mortgage simply gives the seller some recourse in case you don't perform. A sample proprietory Performance Mortgage to Secure Option can be found here. Your attorney can use this sample to draft something that exactly fits your needs.
Thank you for your help.
You have pinpointed the issue exactly.
I will put forward your course of action.
Thanks again.
Duncan
Hey,
That performance mortgage link is to my website, ****Must Reach Senior Investor status before posting URL's***
If you should have any questions with regard to the SAMPLE form, feel free to ask.
I'll do my best to explain.
Just found the link here, using the search engineto see my site.......strange when the term I looked for did not appear, just a link.
Anyway.....
[addsig]