Posted by Max-Va on June 09, 2006 at 21:28:26:
Yes you can. That is how I have sold some of the ones I bought sub-2. Title company has no problems at all with it.
subject-to - Posted by Rick
Posted by Rick on June 08, 2006 at 16:01:44:
Has anyone closed a subject-to deal with an escrow company and had any success? The costs are pretty expensive and I thought we had to get into these properties light. Anyone with info regarding these subject-to deals I sure would appreciate it. By the way I live in Southern California if that makes a difference.
Re: subject-to - Posted by Max-Va
Posted by Max-Va on June 08, 2006 at 18:33:31:
I now close all real estate deals with a title company. Yes it is a little costly up front, with recording fees and title insurance, ect. but it is the cost of doing business. The last sub2 I closed closing costs came in about $2500. In my opinion that is a small price to pay to get it all correct. No way a seller will come back and claim I stole their property after they come to the title office and sign the deed and other docs before the title clerk.
Closing cost on the buying side is just an expense and included in the numbers of the deal.
Re: subject-to - Posted by Luke Hoppel
Posted by Luke Hoppel on June 09, 2006 at 12:58:12:
Perhaps you can answer a questions that has been eluding me lately. When you mention closing on a sub2 deal, are you talking about getting the initial deed or selling it?
From my understanding it’s impossible to take a property sub2 and sell it with the original owners financing still in place. Is this true or can you do that?
Re: subject-to - Posted by Max-Va
Posted by Max-Va on June 09, 2006 at 13:09:47:
I was talking about buying sub-2. Some will say I am nuts, but when I buy sub-2 I agree in the contract to make all payments to the lender on time, I keep that promise. I can not guarantee the payments if I sell
using the sellers existing mortgage. I will not do this although I know it is done.
“From my understanding it’s impossible to take a property sub2 and sell it with the original owners financing still in place. Is this true or can you do that?”
It is legal and done by some. IMO it leaves you very exposed to a lawsuit if your buyer gets behind in payments and ruins the original sellers credit. My advise is buy sub-2 but NEVER sell with sub-2.
Re: subject-to - Posted by Luke Hoppel
Posted by Luke Hoppel on June 09, 2006 at 19:45:19:
I don’t think your nuts at all for promising to make the payments on time. It builds trust with the sellers and sets you apart from scumbag investors.
As far as selling a property you acquired sub 2, I think I misphrased my question.
Can you acquire a property sub2, then sell it having the buyer obtain a new loan and direct escrow to have the payoff go to the original sellers loan?