All Forum Posts by: Jay Jonez

She would have to fix up the house to sell for $220K- $230K and mortgage is for $172K. So after closing cost would be $30K-$40K

Yes, I did look that up in Michigan is a one party consent state so I would be fine on that end. I would hope I don’t have to go the legal route as I would wait and see if she is just threatening or if she’s actually going to go further.   from the sounds of it when I spoke to her before she didn’t really have the money to continue paying the mortgage and fixing up the house but I understand that things do change.

thank you for your feedback, if I do need a lawyer, I will get my ducks lined up just in case it goes that way. Which it sounds like from one of my mentors who’s been in real estate for 22 years when he went through a subject to he won the case, but had to spend $10,000 on a lawyer. 
 

 Hey thanks Joe yes, very great explanation. There were documents at closing that I read and even read over again today two documents that state exactly that the loan will stay in the sellers name, it mentions the impact. The negative impact of the seller of payments are missed, the seller also mention reviewing that document as well. 

What kind of prompted this was she was trying to file a 1098 form for her taxes and wanted to claim the interest for the half that she has. I made it clear that the loan would stay in her name and I would take over the mortgage paymentsand that she would receive $5000. 

My trainer/mentor is irrelevant, you wouldn’t know him. 

This was done through a title company who handles investor transactions. 

Yes, he went through a lawuiy  before with a seller in sub to deal  he mentioned he had to pay his lawyer $10,000 and the original seller lost the case. 

He known of an another investor who went through  a lawsuit and original seller lost as well. 

I was just wondering how it would work if they tried to do a loan modification or file bankruptcy even through I’m making the payments. 

At the moment , I haven’t contacted the title company just yet. The seller just mentioned this. 

I re- read through all my closing documents where she signed off on the “assumption of existing mortgage agreement” which spells out that the loan stays  in her name and the affects of it. A “waiver approval” for the mortgage company without consent” 

I have a call with the old seller next week , I have kept my communication line open and she hasn’t said anything until 8 months later. I was trying to hold back from getting a lawyer and going down that route because she has said anything about legal action. Her sentiment now I understand you got the house and the money you gave me helped me BUT she wants more and feels I took advantage of her as we worked on this deal for 4 months (following up to close).  

I do have the conversation of the phone call  where she agreed to subject to and the closing docs which were notarizes. 

- I could refinance, just would be higher interest and payment but I could do that

- I have a tenant in the property so I could not renew lease next year and sell

Or 

- do nothing and wait for the seller next move hoping it doesn’t get messy. 

I close a “subject  to” transaction in July 2023. It was closed to a title  company. I have been making a mortgage payments since then on time no problem.

The old seller contacted me of course, when they were trying to do the taxes and file a 1098 so that she can claim her part of the interest which kind of started all this and she was surprised that her name was still even though I clearly stated to her for four months, how to deal.  I also have a recorded phone call conversation for over 25 minutes of us talking about the subject deal and she says verbatim” I would be OK if you take over the mortgage and paying $500”. 

Situation that is happening now is of course she thinking that she got taken advantage of and now is trying to give me two options. 

Option one she threaten to do a loan modification.

Option two shoes trying to threaten bankruptcy.

Just wondering for those that I’ve done subject to deal what type of things to look out for or should I not even worry. 

Hi, I have a silly question I am located in Metro Detroit . I have a seller who has accepted the terms to the seller finance deal its a Win-Win situation. Im ready to have them sign but previously I purchased with Hard Money/ Private Money so I just use a Purchase Agreement and send to the title company. 

Since this is seller finance is this considered a land contract when I tell the title company or would this be different? 

Want to make sure I have the right paperwork 

Backstory I have a seller who wants to sell their house for cash. She sick and wants to walk away with at least $15K once everything is over ( wants to sell and move into apartment). There is a mortgage on the property for $63000 with a monthly payment of $696 - PITI . I mentioned trying to take over payments but the issue is the mom and her are on the deed BUT the mom is on the mortgage and wants off.

**Property: ARV: $90K ( being safe there was 1 comp that should for $98K and 1 pending for $95K)

**Repairs:  She explained a bunch of minor things that could be $10K-$15K ( all mechanics have been update and roof within 7 years) The pictures she sent home is definitely livable 

**This property can rent for $1050/ month 

**Mortgage Amount $63000

*Monthly Mortgage payment $696 

Im curious to hear the creative strategies as the cash offer just doesn't make sense here but I want to explore all options