What to do? Seller owes more than what house is worth...

[Taylor Jennings]

The house value is around $50k.

The amount of repairs are around $20-25k.

He owes $30k, but is up to date on the payments.

He recently bought a new house and will have to pick up both monthly payments by September.

Is this considered a short sale scenario?

Can I offer less than what they owe and have a lender transfer the remaining owed into a new loan?

[Brian Gibbons]

These are good replies about sub2 from @Matt Devincenzo and @Samantha M.

1. Sub2 works with ethical careful investors that always pay the underlying liens and then rent out or rent to own, but always pay the underlying liens, rain or shine.

2. Sub2 is a disaster with Sub2 flippers to investors, that is buy on sub2, then flip the contract for $1000 - $5000.

3. Using land trusts and placing the name of the trust as the _____ Family Trust helps alot.

4. Beware of houses that are upside down. If the PITI payment is 80% or less than market rent, consider Master Leasing and sub leasing it out for 10 years and get the cash flow, and make it a Performance Lease, that is, you pay the Seller only if the Tenant is paying you.