Posted by Chris on February 25, 2000 at 13:30:50:
How does Owner get approved on his next loan? - Posted by Gene S, Hou, Tx.
Posted by Gene S, Hou, Tx. on February 25, 2000 at 12:09:31:
My question is how does an owner get approved for his next home when he has sold me his house “Subject to” and the loan is still in his name? Won’t he run into problems when he makes application on his subsequent home in 2 or 3 months?
I know on a sandwich lease option the owner can show his lease purchase agreement with me as Tenant/Buyer and get 75% of the rent credited towards his income which can help him get approved for a new mortgage.
I have done an uninsured “subject to” closing at a title company where the owner and I received a HUD1 closing statement. The title company closer told the owner he could use a copy of the HUD1 as evidence of disposition of his current home when he went for application at his new mortgage company. Was she correct?
Because of the cost savings I now close my own “subject to” deals. If the title company closer is correct about the HUD1 being the answer for my owner, is there anything prohibiting me from filling out one for his benefit? And … where in the world do I get blank HUD1 forms?
Thanks in advance for your answers.