Sub2 -- stumped: what to do if you can't find someone to close it

[David Morgan]

I'm striking out finding a lawyer or title agency who will close a sub2.

Telling them I understand and accept the risks involved hasn't worked.

Are there magic words or a secret handshake?

If I go to the register of deeds and go back 70 years, then look at the title chain from then forward to present, could we simply do a quitclaim?

Any thoughts?

[Account Closed]

Originally posted by @David Morgan:

@Stephanie P. -- that's the plan, or at least make sure I could get one should I be able to close the sub2. You're probably right about the DTI, I hadn't considered that... but like you said, conventional isn't an option anyway.

There are a couple of local banks that do portfolio loans, so I'm putting together the info they've requested. Also looking at companies like Lima One Capital, 5 Arch Funding, and now adding US Commercial to the list ;)

I imagine the interest rate difference between a FICO in the high 600s vs the mid 700s would be worth waiting 2-3 weeks for. 

 A Lease Option is quite different than a Subject To. With a Subject To the Title transfers while a Lease Option does not, among some other very serious differences. Anyway, tell the escrow company you want to do a Wrap or a Land Contract depending on which vocabulary they understand. Yes, there are differences but either one gets you where you want to go. Either can be treated like a Subject To.  DON'T do a Quit Claim Deed (except in very special cases and then only with an attorney or escrow agent). For one, it invalidates title insurance but for two, it can cause a world of hurt when you go to sell and for three, it was one of the most common red flags for fraud in the last down cycle. You don't want to go there.  Have a Title report pulled, use an attorney or escrow for closing (like you are trying to do) and be aware but not worried that the Due on Sale clause exists. Keep some reserves for an emergency and always pay on time so you don't muck up the seller's credit report.