All Forum Posts by: Charlie Fitzgerald

Sub2, or contract for deed, or lease option

Welcome Carl!  

Do the exchange ...

No.

The first thing to figure out is whether the contract T has is expired...

T can't sell without satisfying his debt to S and getting a deed in T's name recorded...

1.  S will have a lien on the asset...at some point T, will have to deal with S...

2.  I would ask T for a copy of the Land Contract...if he won't provide it, I'm not working with T any longer and am going straight to S

3.  T sounds a bit sketchy and I would be very cautious...certainly no money should go from you to T, directly

Sounds like a 2nd home to me...

The lateris worse . Most sub2 deals are refinanced way before the end of the underlying term. Also, once there is s history of someone else paying the mortgage on the sellers behalf for 12 months and the seller can show proof of that, the debt will not be used in dti calculations for the seller moving forward. Sub2 deals when properly done are great and a win/win for both buyer and seller.

Let me know what you need .  Glad to help.

Me.