Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 8 years ago,

User Stats

130
Posts
110
Votes
Charlie John
  • Investor
  • Twin Cities, MN
110
Votes |
130
Posts

Buying a flip subject to

Charlie John
  • Investor
  • Twin Cities, MN
Posted

Hello BP,

I currently have a verbal agreement to purchase a home for 90k. I met with the children over the weekend who inherited the property from mom. The house has already gone through probate and they are ready to sell. They were cleaning most of the junk out of it when I met with them.

At this point, they are 30 days behind on the mortgage and need to sell the property as-is and quickly because they do not want to put anymore energy or money toward it.

I offered them 90k and they gladly accepted. I told them on Monday I will draft up a purchase agreement and we can move forward.

The mortgage balance is 78k.

This house needs about 20-25k in repairs and I expect to retail it for 159k.

A couple questions:

  • If I were to buy this house subject-to and keep the existing financing in place, how do they get paid at closing? Do they get a check for the difference? 12k.
  • How much would this typically cost to have my title company draft this type of contract up?
  • Is buying subject to as simple as changing the mailing/billing address with the mortgage company and now I make the payments for the next 3-6 months until the house sells?

Thanks for any help you can provide. I will continue to search the forums for more information, but it's always nice to have a thread of your own!

Loading replies...