Posted by David G. on October 23, 2003 at 17:15:47:
Find out what the home is worth, What the mortage balance is and amount of monthly payments.
Since she bought the home 2 months ago, its very unlikey that she can sell and get the loan out of her name reason being is that many lenders require at least 1 year if ownership before selling.
Another option is taking over her payments. Get the deed out of her name into yours…SUBJECT2.
IN THAT case you would own the home, but she would own the loan. Of course you or your buyer will be making payments either directly or via escrow.
Posted by Triumphant on October 23, 2003 at 13:15:17:
I am in the middle of negotiating a sale for a property that the owners wants OUT, OUT, OUT. She hates her house. She just purchased it 2 months ago (New construction). She wants the deed out of there name and she wants the mortgage out of their name. She would love to get the $13k she paid in closing cost back, but I convinced her that was unlikely. She wants to go back to her previous home. The new house is a 2400 square foot home in Southfield, Michigan. Her husband, is willing to do whatever makes her happy, so he doesn’t care. She is practically begging me to find a solution for her. I’m a newbie and would love to help her.
One of the options I want to provide is taking ownership subject 2. My problem is what documentation/forms need to be completed. I can do the Quit Claim, but what do I need to do regarding taking over the mortgage. Would a Promissory Note for the exact amount of the mortgage (terms and conditions). I’ve never done a subject 2, but I figure if I can give her 2/3 of what she wants, meaning the house would be out of her name and she could move back to her previous home. She might be happy.
Up to now we’ve been negotiating a Land Contract deal. Any suggestions or ideas. All suggestions would be greatly appreciated. I just want to help her, even if someone can finish the deal. (For a small assignment fee)
Posted by Mark W-MD on October 24, 2003 at 11:19:43:
Keep in mind L/O or Sub/2, loan stays in the current owners’ name. That is advantage to investors in that they don’t have to re-mortgage for the first.
You also need to get either a local RE investor as a mentor or get some education on what these solutions are before you go out and start negotiating with home owners. It’s good she is motivated, but you need to be able to back up and do what you say you are going to do.