Fairview Heights, IL · Member since 2013 · 31 posts · 5 votes
I have a seller with a well maintained 3/2 house with no A/C in a C neighborhood. Seller has very little equity. 52K mortgage on a house worth 60K. The seller is older and wants to downsize and move to a duplex. She only wants what she owes or for someone to take over the $623 payment. $138 principle, $485 interest (she showed me the bill). He mortgage has an 11% rate.
She's currently refinancing to get a lower payment. She's open to lease option or subject to for the new mortgage payment. My strategy is to hold it as a rental.The house will rent for $800 or $900.
I'm just not sure how I should structure the deal. Lease option or subject to? I'm concerned about the due on sale clause but i do want interest in the property.....looking for some good feedback BP
Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
11y
She is refinancing, so that's good because that rate is ridiculous.
Buying 'subject to', after she refinances, seems like the obvious answer. I just hope you honor your commitment to cover the seller's interest. I see too many cases where a 'subject to' goes bad and the old lady seller is the defendant in a foreclosure suit.