Posted by Craig (IL) on February 15, 2002 at 13:04:47:
The seller’s credit WON"T be adversely effected if it means you are paying for the loan(s) the seller can’t afford. Not being able to make payments is one reason why the speed of a subject-2 deal attracts these sellers. Instead of foreclosure, your subject-2 offer is about helping them.
The seller’s credit could be adversely affected if, after having taken over payments, you reniged on your promise. Making earely payments and informing the seller of each payment is one way of dealing with this question.
If the seller later seeks a loan, I understand that lenders look at such deals in a similar way as rental income–lenders will consdier of 75% of amount of your payments in figuring the seller’s income. I doubt this is a hard and fast rule, though.