Re: Subject To Deal - Posted by B.L.Renfrow
Posted by B.L.Renfrow on February 26, 2001 at 18:00:17:
Glad to hear you are doing subject-to deals. They’ve become my favorite kind.
That’s a question you’ll hear from almost every subject-to seller, except for the ones who are so desperate they simply don’t care. I tell them that yes, indeed, if I did stop making payments the lender would surely come after them and their credit could get trashed.
Then I ask them to stop and think about it. I point out that I make most of my profit when I sell, so I will be looking to pay off their loan at some point. I tell them (truthfully) that if I stopped making payments that I’ve agreed to make, I wouldn’t be in business very long. And, I point out, if true, that their credit is already teetering on the brink, so my paying their loan on time can only help them. If they’re still wavering, I offer them references (haven’t had anyone take me up on that yet).
If all else failed, and the deal warranted it, I would offer to sign a quit-claim deed back to the seller and have it held in escrow in case I ever became more than x number of payments delinquent on the note. The escrow agent could be given instructions to record the deed if that occurred.