Owner Financing - Subject two's

[Indya E. Allen]

Hello all,

I am 19 years old researching subject 2's as a way to buy my first property. I have already found a property but it is off-market. I did a little digging and the owner is being sued by the HOA and is headed towards foreclosure if not eviction. Because homeowners cannot be evicted right now, the case has been paused but remains open. For those of you who have done an owner-financed subject 2, is there anything I should know ahead of time? Everything I am researching says that I can take over the payments without a down payment, is this true? I am based out of Illinois by the way.

[Louis Jeffries]

@Indya E. Allen

Hi Indya, good luck. To purchase a home with seller financing is good. I would mention 2 things per this situation. First you asked if buy from the seller with no down payment was possible and it is but the seller must have incentive. If you find a rare seller or situation were that is not the case you ar lucky.

Secondly and more importantly is the HOA.

Why are they foreclosing on him? Is he behind in payments. If so can you catch them up? The same is true with the mortgage, if it is behind can you catch it up. Also the HOA has to accept you as an owner. Just because you strike an agreement with the seller does not mean you are in.

I personally don't like condominiums as investments for a few reasons, but they can be good with the right numbers.

Just make sure the HOA is in good shape , the property does not have too many renters and you would qualify for financing as a warrantable condo.