please help to figure out the best way to buy

[Mary Jay]

So I was trying to do a deal subject 2 in a lien theory state. The seller owes 35K on the mortgage, property value is 65k. And the seller wants 65K. So if I buy the property, then the seller will continue to pay the mortgage, the seller will give me the title, and I will pay to the seller monthly. Do I understand it correctly? I do not really like land contracts because the seller keeps the title. Is subject 2 the best way to go? Is there another way of buying the property (I do not like lease options)...

Thank you!

[Mary Jay]

Originally posted by @Lynnette E.:

Originally posted by @Mary Jay:

Originally posted by @Lynnette E.:

Originally posted by @Mary Jay:

Originally posted by @Lynnette E.:

@Mary Jay what is your recourse if the seller does NOT make the payments?  You pay the seller upfront then the seller has no reason to ever pay the mortgage.  The mortgage company forecloses and you have nothing.  

 The mortgage is still in the sellers name, I do not get foreclosed on. The seller gets foreclosed on.

Yes, the seller gets foreclosed on!  Guess what ???  YOU loose the house!  So, why would the seller care if there was a foreclosure?  He may get a lower credit rating, you loose the house you already paid for.

 Do you have a better idea?

 Yes!  YOU pay the mortgage.  If you must keep it in her name, then YOU take the responsibility to pay it directly to the company to ensure it does get paid.  If you are paying her more than the mortgage amount then you write 2 checks one for the mortgage directly to that company, you mail it or do it on line, and another to her.  

And make sure you are added to the property insurance as an other insured, and get your own liability policy.

 Thats a very good idea!

I did not think about it..

Thank you so much for your input!