Just fully understand how L/Os work and their potential problems so you don’t have any surprises later (ok big surprises).

http://www.orlandosentinel.com/business/os-foreclosure-mediation-fla-20091228,0,2797478.story

Back in the old days when I had fully assumable FHA/VA loans underlying I could run an ad that said; "Owner will finance with $1,000 down", and have my pick of buyers.I never really liked doing CFDs or L/Os, particulary after Texas changed their laws, so I went back to doing straigh up SALES.

In my market L/Os are going for around 900-1500 depending on the area and condition and all that.

But L/Os are riskier than a sub2 if you don’t have a margin of safety and understand the things that can go wrong and be prepared for those possibilities.

Thought many of you would get a kick out of this:http://www.orlandosentinel.com/news/local/lake/os-mount-dora-doctor-tells-patients-go-aw20100401,0,658649.storyPersonally, while I don't agree with his specific philosophy (you could have voted for Obama and have been against the specific health care bill, which seems to be the more important point), I respect him for taking a risk with his livelihood to stand up for his beliefs.Then again, it may have been a strategic move, as with all the press coverage he is no-doubt getting locally, he'll probably drum up a lot of business!

L/Os are very hard in TX.

That attorney can also add verbiage to the agreement that specifies exactly what happens if/when the buyer is late or defaults.Third, the seller could also establish an impound account, and require the buyer to escrow enough cash (which could also be part of the down-payment) in that account so that the seller may endure the foreclosure process without taking as large of a loss (if any).The list goes on, . . . but the point is that there's definitely a way to structure a subject-to mortgage in a way that's safe for buyers and sellers alike.Here are some good ideas, I'm bumpping this thread as it was a link to another thread where we were getting off topic from a CFD to sub-2 and L/Os.

Sorry, for the Type-Os my hands are moving faster than my mind LOL!

I recall the early 2000's when Microsoft lent Apple money to keep them in business (and to keep the DoJ off their case - they needed another OS using Office to fend off anti-trust suits).