Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Wholesaling
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 17 years ago on . Most recent reply

User Stats

42
Posts
0
Votes
Brian Christensen
  • Real Estate Investor
  • Elgin, IL
0
Votes |
42
Posts

Contract section question...

Brian Christensen
  • Real Estate Investor
  • Elgin, IL
Posted

I have a question about a section in my purchase and sales agreetment I plan on using.

It reads the following...

EXISTING MORTGAGE (s): Existing financing on subject property will be current in all payments of principal, interest, late charges and escrow amounts required by the mortgagee. Escrow balance has been calculated into the price and will transfer to the Buyer along with the title. Buyer will take title subject to his debt.

Does this mean that if the seller has a mortgage, the selling price is to cover, at the very minimum, the payoff value of the house (including principal, interest, late charges), plus any "escrow" amounts the seller wants?

Or does it mean that before close, the seller has to be current on all payments of the house including principal, interest, and late charges? Because if thats what means, then...isnt it impossible then to sell a house that you are in (pre)foreclosure on because being in (pre)foreclosure basically means you are behind on payments and the reason you are selling it is to avoid actually taking the hit of the house being taken away.

I dont know, maybe I'm just an idiot, but the wording of that section just came off weird to me.

Loading replies...