Posted by Stacy (AZ) on January 31, 2000 at 20:29:35:
There was some advice a while back on this board, that I discovered is very true as I started to make deals. You will know a motivated seller when you find one.
My current subject-to deal is a couple that is behind three months, with the creditor calling them with threats, and their house needs about $6K before it could be “retailed”. I told them that I would like to pay-off their arrearage, give them an additional $3000 for moving money, and make their mortgage payments until I can rehab and resell…which may take a few months. Being this close to foreclosure, this was music to their ears. I told them about the “due-on-sale” clause, and the fact that their names would remain on the loan, and compared to their current dilemma, it seemed like no problem at all to them. Can you put yourself in their shoes, and understand why they would think this way? If I was n a jam like they are, I’d go for it too.
My last subject-to deal was an out-of-state mortgage broker of all things. Believe me, he understood the DOS clause, and subject-to…and all the ramifications. He had perfect credit, but was unable to manage this home from 1000 miles away, and was loosing $200 per month trying to rent it out. He allowed me to buy it subject-to, provided I set up a servicing account and gave him back a performance deed of trust, so he could make sure the payments were being made, and he could regain title if I paid late. It didn’t matter at all to me. I knew I’d make his payments, and I ended-up selling the property to a new-loan buyer (a real estate agent that wanted the house for herself) after making only one payment anyway. But without the performance mtg and servicing account, the seller wouldn’t have done the deal. He was motivated, and I recognized it, and worked to a solution that made him feel comfortable.
There is a world of difference dealing with a truly motivated seller. Show-up, pay attention, be truthful, and don’t be attached to the outcome. Some will work-out, some won’t. NEXT!