Selling my personal home on Sub2

[Darrick Richardson]

Hi folks, before I knew anything about REI I bought a brand new home 1 year ago. there is very little equity and the payment is manageable but leaves me not a lot for saving and investing.

I am thinking of selling my home on Sub2 at retail to a buyer. What should I take into account to have it work? My biggest concern is still having the underlying mortgage in my name.

There is not enough equity to sell it retail through a realtor.  I would owe money at closing which I'm unable and unwilling to do.

I already know the way I bought was not smart so please lets not waste data bits telling me that part :)

[Jay Hinrichs]

depends on what state.. if your in CA and can use an all inclusive deed of trust or similar trust deed mortgage in your state those have some good protections for you.

suffice it to say doing sub too as seller is 100% your risk and NO risk to buyer when there is no equity.

So you need to make sure your making the payment monthly so your credit does not get harmed.

you may have problems borrowing money in the future with this loan still in your name

in some cases no equity sub two buyers can really be down right thieves.. they get into your home they lease it out they rip the rents and don't pay you.. you don't have title to it.. so its a huge mess to unwind..

personally I would be more inclined to do a Lease with an option to purchase.. gives you more control since your not getting any money out of the deal up front anyway.. 

So boils down to whats your FICO rating worth to you.. do you want to risk it.. what are your plans in the future will this loan harm you other than fico with DTI etc..