Posted by Ed Copp (OH) on September 29, 2003 at 19:37:27:
You worry too much.
The property owner can deed the property to anyone that they want at any time.
If an investor takes title subject to the existing financing can the lender call the note due. Yes in most cases.
Will they call the note due, NO in most cases especially when the payments are being brought current.
For a good solution I would suggest reading up on “land trusts”. This probably offers the best solution.
Pre-Foreclosure Deed Transfer Question - Posted by Flipster
Posted by Flipster on September 29, 2003 at 08:11:51:
Hi, In a Preforeclosure can the Homeowner legally tranfer the deed over to an investor and the investor bringing the Mortgage current and continue making payments “Subject to” existing financing??? Wouldn’t the lender call the note due???..if the lender finds out that the owner has transfered deed they will probably call note due but to avoid this I guess you could Flip the house before lender attempts to call the note and the Buyer pays off the loan leaving you a profit. Also, the original seller could transfer the deed to the investor and do a sanwich Lease/ Option with a tenant/buyer for 2 years and after 2 yrs tenant/buyer Finance the house and paying off the balance of the 1st mortgage and the investor keeping the spread. Some investors that have the Deed transfered to them just find a Hard Money lender and pay off the Balance of the Loan and resell…So basically my question is: in a Pre-foreclosure deal what’s the best way to aquire the property without having to put pay off the loan balance…“Subject to” or Lease/Option ??? any Suggestions? Thanks ;o)