Help 4A really new Newbie - Posted by Christina

Posted by JoeB(Atlanta) on June 13, 2000 at 11:13:05:

Hi Tommy, we’ve never had a lender object to us buying ‘subject-to’ (probably because we immediately make up all the back pmts to the lender and we keep the loan current)…but the whole buying ‘subject-to’ discussion has been addressed quite a bit on this site. Just type in ‘subject to’ on the Search Archive (button at top of site) to read all posts.

Best of success,
Joe Brillante

Help 4A really new Newbie - Posted by Christina

Posted by Christina on June 12, 2000 at 19:22:57:

I just finished going throught CS course for the second time and I am really excited and chomping at the bit. A real estate friend of mind told me about a seller who is one step away from being foreclosed. The seller owes abourt 4 months back mortgage and has to get out now. They have even had their utilities turned off (the situation is bad). The area homes list for 145K but they are willing to let this house go for about $125. I am in the no money poor credit situation so bank financing is out. From a newbie stand point this sounds like a great deal. But how would I go about doing it. Our realtor friend does not believe in “no money down” purchases so there is no help there. This would be our first home!!! Help ASAP please.

Re: Help 4A really new Newbie - Posted by JoeB(Atlanta)

Posted by JoeB(Atlanta) on June 12, 2000 at 21:48:53:

Hi Christina, the quickest way to get this deal would be for you to come up with the $4k to make up the back pmts to the foreclosing lender (either through your savings, cash advances on your credit cards, friendly partner/lender, etc.) and buy the house ‘subject-to’ the loan. This means you’ll take over the pmts and own the house, but the loan will stay in the seller’s name.

Issues: you need to figure out if this is a good deal first. What’s the monthly pmt you’ll be taking over? Will you rent it out or LeaseOption or rehab & sell? What are comps? Does it need fix-up? Cost? If it’s listed with the agent you mentioned–how will he/she get paid their commission?? Can they wait and take a note for their commission??

Overall, if house needs fix-up this may be too thin a deal. But examine all the above questions and decide.

Best of success,
Joe Brillante

Re: Help 4A really new Newbie - Posted by Tommy_FL

Posted by Tommy_FL on June 13, 2000 at 08:46:04:

Joe,
How exactly do you do this? What would the lender say if they find out the borrower is no longer the owner? Where I am (South East Florida) is a real seller’s market but I think I can still find deals in the preforeclosure market but just lack knowledge of the techniques. Any enlightment would be greatly appreciated. This site has helped bought 2 properties so far…Thanks all.