Posted by Jim K. on February 28, 2002 at 24:59:17:
I also figure that it might help them in that presumably the payments will be made in a timely fashion. That certainly helps their credit record!
Subject to…sellers position - Posted by mal-canada
Posted by mal-canada on February 27, 2002 at 21:14:28:
Just trying to get the old grey cells around this “subject to” business. when the seller gives you the property, does the existing mortgage cause them any difficulty if they wish to purchase another house shortly afterwards?
Re: Subject to…sellers position - Posted by Craig (IL)
Posted by Craig (IL) on February 27, 2002 at 21:57:14:
Most sellers willing to deed over their home in lieu of an investor’s written promise to pay the mortgage are already in financial trouble, and won’t be seeking a new mortage for a while, not until they can improve their financial situation and credit worthiness. Selling subj-2 was part of their solution, not part of their problem. Talk with sellers this way.
Following that, or in a case where a seller sold their property this way but isn’t in financial trouble, I have read (but can’t say from experience) that many lenders will consider your agreement with the seller the same as rental income: 75% of your payments (if you paying $1000/month, the lender will count $750.00 of it) in figuring ratios.
Re: Subject to…sellers position - Posted by JoeS
Posted by JoeS on February 28, 2002 at 07:28:06:
Craig: concerning subject to; how do I assure the seller that the payments will be made on time? Do I set up an account with a third party to send them in? I am trying this method and have met this resistance. Thanks in advance.