Unique situation - Posted by B.L.Renfrow
Posted by B.L.Renfrow on July 04, 2004 at 10:50:10:
You make a valid point, about having necessary reserves. If you read my (non-anonymous) posts on subject to deals, you know it’s an issue I raise repeatedly.
However, I didn’t mention it in this case because this situation is a bit different than most. The original poster said his brother is the one being foreclosed on. Plus, the poster is occupying the property, so he stands to be personally affected if the foreclosure is completed. It sounded as if the foreclosure process was nearly completed also – not the typical deal where a stranger calls up an investor based on an ad or mailing, maybe a couple payments behind, and the investor proposes subject-to as a solution.
I think this poster’s situation may call for a more aggressive approach than most, and if that means taking more risk, it may be worth it. Of course, only the poster involved can ultimately make that decision.
Since the one being foreclosed on is a family member, one would hope he would be less likely to run to a lawyer if something goes wrong, though that may or may not be a reasonable assumption.
Again, a valid point, but I think one may be justified in not following the formula to the letter in this case, since this is not purely an “investing” scenario.