Financing part of the purchase - Posted by Tim

Real Estate Investing Real Estate Financing
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Posted by Dave on May 02, 2007 at 14:01:04:

If I were in this position I would do the sub2 with the intent of wholesaling it quickly to a rehabber with cash. I have an appt. this Saturday for a homeowner facing foreclosure and that is my exit strategy from the sub2.

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Financing part of the purchase - Posted by Tim

Posted by Tim on May 02, 2007 at 06:57:32:

All,

I have a situation where the owner has a house thats selling for 100K and is worth about 170K he owes 60K and will sell it to me for 100K and allow me to take over the 60K mortgage and hold a note for the additional 40K.

My title company says that they can not do this type of closing in that his 60K is not assumable. So can I get a new loan for 60K to pay off the existing mortgage and still have him hold the 40K in a 2nd?

If so would I have to put a percentage down on the 60K?

Thanks,
Tim

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Re: Financing part of the purchase - Posted by James Harris

Posted by James Harris on May 02, 2007 at 09:38:27:

Tim, You could take the property “subject to” the existing mortgage. This usually makes a non assumable mortgage an assumable mortgage; as I understand it. Or you can go out and get a mortgage.

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Re: Financing part of the purchase - Posted by Tim

Posted by Tim on May 02, 2007 at 10:05:02:

James,

Thanks for the reply. I was thinking about “Subject To” but I was wondering if there was an alternative. I do not want the due on sale clause to bite me.

Is it possible to get the 60K mortgage and not have to put 10% of it down?