Re: Subject To- - - & HELOC - Posted by rm
Posted by rm on September 16, 2003 at 08:26:39:
If they’re behind on the first, it’s very common that they’re actually current on the second…
You could, in that case, short the second. Somebody recently replied to a posting of mine, saying that they had actually shorted the second and re-instated the first. Then, you could take the home sub2. And the numbers would work.
What you’ll find is that most of these folks took out the second to pay off junk debt.
What I do is ask them, “What did you do with the money that you got with the second mortgage?”
It’s almost always for something unnecessary.
My reply is, “So what you’re saying is, you’d like me to buy your home at a fair price, and then, pay off your (credit cards, trip to the Bahamas, etc.)?”
“That doesn’t like a very fair deal… would you do that?”
Then, I go on to tell them that I can buy their home, but I can’t pay for their [junk debt] as well. If they’re willing to take back that debt, and pay it as before, then we can proceed.