All Forum Posts by: Account Closed

Hello Cindy, and welcome to BiggerPockets! Now that you have your formal education completed, you can go out and get your "street degree" in real estate investing! Let us know what your plan of action is, and good luck! Mike

I was wondering if anyone has ever done this? Meet with a Seller in foreclosure who is about 6 months behind on their payments. Assume he has adequate equity so that you will not need to try a short sale. Make a deal with him to buy his house. Contact his lender and negotiate a forebearance on the owner's behalf to spread out the back payments and fees over the next 24-36 months. Then buy the house sub-to and start making the payments. The Seller of course has to leave. If there was enough equity you could even agree to pay him some portion of his equity now or over time, when you sell it in the future. Has anyone ever tried this process? I don't remember hearing of this strategy before, even though it is a simple plan. Thanks, Mike

Mike, how would you be marketing to BK sellers?

Sounds like this is not a potential sub-to deal, but instead you should pursue a short sale only.

If you buy an d close on a property subject to the existing mortgage, the deed actually goes into your name. The previous owner, who still has a mortgage in his name, cannto sell the house because it is not in his name any longer, just the mortgage. If the previous owner tried to call his lender and arrange a short sale, then yes, that would screw things up a bit. When the lender checked he would find that the deed had been transferred to another party - the investor.

Yes you could refi as you suggested. However, alot of investors see subject to as an opportunity not to have to get new financing at all.

I think a water feature is pretty dull if it is not working and looking it's best. If you have the time and money, I would go ahead and install the pump, stack up some flat rocks and create a simple waterfall. Buy a lilypad from the store. Plant some plants around the pool. Most buyers will like it if it looks good.

Fred, Anything is possible. In a way, sub-to is a form of owner financing. They are risking that you will take over their payments, and then you yourself don't make them and the house goes into foreclosure. Not good. In fact, you could conceivably do a sub-to deal, and also pay them some amount in monthly payments for some of their equity. So, it's not always a deal where they agree to lose all of their equity if they do a sub-to deal.

It may be as simple as they were saying to use the word "agreement" rather than "contract when talking to the buyer or seller. "Contract" can be a scary word.

When you talk to them you can ask if they are interested in helping with the financing. If they say yes, but how, then tell them you have several ways that you can buy, if they are willing to wait for their money. Lease purchase, ocntract for deed, subject to. In each they are allowing you to pay them for a period of time before you eventually cash them out. In each they save sales commissions.

You are right - sometimes when you have tried all you can to convince them that you are offering a good deal, and they still say no, then you have to say "they were not motivated enough" and move on to the next one. Always leave the door open, because they may very well decide that they should have taken your deal and call you back later when their house doesn't sell. Good luck, Mike