Re: are they motivated enough? - Posted by Stacy (AZ)
Posted by Stacy (AZ) on October 26, 2001 at 12:39:05:
You could also consider buying by using an exact wrap via contract for deed. You could negotiate a balloon for the CFD, when the sellers would get their loan paid off. 18 months is too short though. For these purchases, try to negotiate for no shorter than five years or so. Longer is better, if you can get them to agree. Sometimes those who reject a pure subject-to sale will agree to a wrap/CFD.
However, be aware that this is different than buying subject-to via getting the deed. You are committing to pay the monthly payments, and pay the loan off on or before the balloon date, in a recorded contract. They could foreclose if you didn’t perform as promised, whereas with a subject-to/exchange the deed transaction, they have no ability to foreclose. Also, you will not get the deed until you pay-off the loan in the future. However, you will have equitable title until then.