Posted by Doug (ON) on August 19, 2001 at 19:04:18:
Anyone who isn’t motivated would probably think it’s stupid.
The truth of the matter is, the people who you should be approaching to do this with have little choice. They’re probably going to lose the house anyway, so they might as well get something for it, or at least save their credit, by signing the deed to you.
You can also point out that you’re in this business to make money solving problems. If you didn’t pay their mortgage, you wouldn’t make a profit because you’d lose the house.
And… not only do they save their credit, but their credit actually benefits from your payments.
Finally, depending on the situation, you can always drop down to a CFD or L/O if they don’t go for the sub2.
I understand subject-to deals, however, I was doing a little exercise with my friend to determine whether I can go ahead and actually do a deal. I found out the importance of a motivated seller since my friend pointed out that it was a “stupid” idea to sign your house over to somebody else and still have a mortgage (even though I did try to explain to him that there is a contract drawn up saying that I will be responsible for mortgage payments). My question is, what exactly do you tell people when you are making such a deal, in other words how do you educate these people of what I am trying to do.
If any one can help me with that it will be greatly appreciated
thanks