All Forum Posts by: Gabriel Z.

Hello,

I have recently gotten a seller to sign an agreement to a subject-to deal. The loan amount is $220000, and the estimated Zillow price for the home is $600k. However, the home is in quite poor condition and disrepair and will require a lot of work to get to this value. This seller was previously in default, but that amount was cleared. However, they have now come back into default on their payment about 4 months and their mortgage will be up for foreclosure in about a week. The agreement was signed and the overall purchase price $225K. The pre-foreclosure status is to be cured before the end of escrow, whenever it happens. There is also an addendum that allows the seller to stay in the home as long as they need, provided they sign a lease agreement with us. We are also going to repair and clean the home at no cost to the seller if he is There is also an addendum that says they are also entitled to the profits (split with us) if the home is sold by us. 

My questions come from the situation that arose as we approached title and escrow to open an account for this agreement. The agent warned that the purchase price is much lower than the estimated value of the home, so the county may not allow this type of title transfer. The agent also mentioned that there is also the question of foul play that may come up, such as a scam.  

Has anyone ever encountered this situation with a subject-to deal? 

What can be done to make sure that I do right by the seller and make this is a legit deal? 

Is there any way to reassure the county/escrow of this situation? 

Is this purely a numbers situation where I may just need to increase the purchase price?

If so, by what method would I do so? Bring more cash to closing, addendum that specifies how much the seller would receive should the property be sold, etc.

Any insight on this situation would be greatly appreciated. Thank you.

Awesome. Thanks for the tips! I would like to clarify and ask further:

1. I am only about 3 months into my FHA loan. If I potentially need to move away to be on site, is there going to be any problems regarding the FHA loan? To my understanding FHA loan requires you to live there for about a year. This is probably going to dictate whether or not I take the offer or not.

2. I do plan to continue being a W-2. Does going into investment properties hinder the cash out refinance/HELOC capabilities in the next few years?

Hello everyone,

I currently have an FHA loan on my property and I was able to finance this because I work remote. However, I recently got an offer letter that will require me to be on site. I have a couple questions:

1. Am I able to get out of the FHA loan and refinance into a conventional, investment loan, and what would that process look like?

2. I make the house not my primary residence, will I still be able to get a cash-out refinance, or get a HELOC on the property in the future?

Thanks in advance.

Hi, I've just received several tenant deposits for my first home. I read that you are supposed to put security deposits into an insured savings account that bears interest. 

Does this mean any type of savings account, including high yield savings accounts like Goldman Sachs Marcus? What exactly are you supposed to do with the interest? The home is California and I have heard some conflicting inputs on this. Thanks in advance for the help.