Friendswood, TX · Member since 2016 · 4 posts · 2 votes
I'm a newbie here so I'm not sure how to find the information regarding my matter but this is the situation I'm about to deal with. I have a homeowner that just got their first foreclosure letter and their house has been for sale for over a year and I want to owner finance it from them, get the payments caught up with my money and invest my money in the rehab, and then sell. But I want to make sure my interests as far as the sales proceeds are retained strictly for me and the seller gets their agreed price only but nothing more than the agreed on. If this makes sense. Is this possible and how?
Investor · Julian, PA · Member since 2016 · 92 posts · 24 votes
10y
HI @Jarred Aune, this sounds like a possible deal, with them having a mortgage on the property owner financing is out the door as it is only structurally possible if they own it free and clear. you could do a "subject to" on the deal and as you said make up the payments and pay their mortgage until you can sell it or sell the deal to another investor. some questions come up in my mind though,
how much are they asking? and whats the property worth?
Are they moving out? if not what is your plan for that.
how far behind are they and how much?
what is the mortgage amount? and the payment.
will they sell for what they owe?
your question on the sale proceeds- if you do this as a "subject to" or how ever you get this under contract make sure you have a attorney draw up the paperwork for the terms of the deal and a separate paper for the sale agreement with price that you agree on. once you sell the property you can cash them out on their agreed price. i do not have exp with this transaction only studied them.
this could also be constructed as a "Lease option" but without much of the details its hard to say at this point.