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Updated almost 7 years ago on . Most recent reply
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Subject-to deal going to forclose and couple divorcing
Hey guys, I received a call from a bandit sign last week from a lady who is behind on her mortgage payments. She says she's behind at least 5 months. Possibly a few more... Claims that pay off is somewhere between $160,000 and $170,000. I went and looked at the home tonight and its in very good shape. It has a newer roof and heat pump; with some new paint, carpet in some bedrooms and a little landscaping this place should easily bring between $240,000 and $250,000. She doesn't have time or feel like listing the place and trying to sell with an agent so thats where I came into the picture. I got her to agree on a "Subject-to" deal tonight verbally. She says her rate is fixed and so on and so forth. I figure I should do my normal due diligence (title search and home inspection).
Here's where it gets confusing. She's owned the home for 20 years and the tax records online only show the home in her name. Her first husband passed away about 9 years ago (they lived in this home together). She is now re married (Not sure how long this marriage has been in place) and just recently filed for divorce with her second husband. She claims she has until May 29th to get rid of the home before it goes to auction.
I've never done a subject-to deal, this is only my 3rd deal all together. If purchased I plan on a quick and small rehab before selling. Does anyone have any suggestions on dealing with the divorce and husband issue? I'm just trying to cover all my bases. Does he have any rights or say so in the situation? I've already spoke with an attorney about the "normal" subject-to deal but I just learned about the divorce situation tonight, so I plan to call him tomorrow and see what advice he has. Thanks for any input or help! I don't post much on the forums but I bet I've listened to every single podcast at least twice!! I love it!