How can seller receive credit on subject to pmts? - Posted by Tarun_MD

Posted by Anthony-OH on May 10, 2002 at 13:53:12:

Do you just file your HUD-1 or do you record it? Or what do you do with it?

:wink:

Thanks

How can seller receive credit on subject to pmts? - Posted by Tarun_MD

Posted by Tarun_MD on June 28, 2001 at 21:46:09:

I took a house subject to last week. Today, the seller calls me up and asks me if there is any kind of an agreement I can give her that will show that her payments on the mortgage are covered. She is trying to qualify for a car loan and says that they will need to verify this.
My understanding is that when you do subject to’s, the sellers will have a tough time proving to another lender that the payments on their current mortgage are covered.
I could possibly give the seller a lease agreement where I am the tenant or maybe give her a land contract where I am the buyer. This should help her get credit for the mortgage payments. However, can I get into trouble for doing something like this? Am I just taking on additional liability by doing this? Could this be considered unlawful?
Thanks
Tarun

HUD-1 - Posted by TRandle

Posted by TRandle on June 29, 2001 at 07:46:51:

Tarun,
I’ve also had that issue come up in regards to folks buying their next house. It’s probably only been a handful of times, but each time the sellers just showed the closing statement (HUD-1) and received “full credit” for the payments I’m making. Hope that helps.

Have them show a copy of the signed agreement - Posted by Jim IL

Posted by Jim IL on June 29, 2001 at 24:21:59:

Tarun,
I have dealt with this same scenario a few times.
In fact, just last week a seller from a deal we did last year called and asked for “proof” that I was now the one making the mortgage payments.
The seller said that the finance officer at a car dealership wanted something to show that she was not the one making the payments, and I was.
I just told her to show them the purchase and sale agreement, and pass along my contact info for any questions they may have.
The dealership finance guy called me and asked if I could fax him something, like a letter, along with a beter copy of the agreement, since the sellers was hard to read.
I did that.
She got her loan, and the new car and called me to say, “Thank you Jim, last year I could have never afforded a new car, and thanks to you, I now have one.”

Just have your seller show a copy of the agreement to purchase, and pass along your number.
It worked for me.
I’m not sure the car dealership guy understood exactly what the deal was, but he saw an agreement dated last year that showed she had sold the home, so he allowed the loan to go thru.

I’ve done this a few times over the last couple of years.

Whatever you do, DO NOT write up some other type of agreement. It would not be a good thing in my opinion to have a ficticious agreement out there with your name on it.

Good luck Tarun,
Jim IL

Re: HUD-1 - Posted by Andrew

Posted by Andrew on June 29, 2001 at 11:40:25:

TRandle,

Haven’t seen much mention of the HUD-1 from folks that do their own closings…

Do you prepare a HUD-1 when you do your own Subject To closings??

Thanks,
Andrew

Re: Have them show a copy of the signed agreement - Posted by Tom

Posted by Tom on June 29, 2001 at 01:31:17:

getthedeed.com has a form letter for exactly this purpose in their forms kit. They issue it to every seller.

Re: HUD-1 - Posted by TRandle

Posted by TRandle on June 29, 2001 at 20:59:31:

Andrew,
Yes, I do. It makes it easier for the recordkeeping and it has assisted my sellers in getting 100% credit for their payments.

Re: HUD-1 - Posted by ScottE

Posted by ScottE on July 15, 2002 at 13:05:03:

Tim,

I have a HUD-1 from Bronchick’s course, but do you know where I might find instuctions as to all of the different lines?

Thanks
Scott