Transfer title question
I have a person whom is going through foreclosure, we agreed that
I will pay him walk away money and I will re-establish the mortgage
payments and he will in turn deed the property to me but he will remain in the
loan,possibly for 3 to 4 months while I find a buyer, I have never
done this before. Can anyone refer me to a title company or attorney who
can help me set up this transaction properly so my buyer and I can be
protected?
Regards,
J
ANSWER
Charlie Brown can be reached at 512-346-6000. He can sell you the paperwork necessary to buy this property “subject-to” the existing loan. He will probably charge you in excess of $1000, as this costs some $$ to develop, but don’t quote me.
In most cases, investors that buy properties this way, are more interested in protecting themselves, then the buyer, and thus the contracts are fairly one-sided. For example, the contract will basically say “I the buyer agree to make the mortgage payments if I can, but if I don’t, I’m not liable for anything that might happen to you the seller as a result.” In almost all cases in my experience the seller is fine with this. In other words, if their were better deals out there, they probably would have gone after those. That being said, when I buy a property “subject-to”, I do go out of my way to make the seller feel more comfortable by giving them references, telling them a bit about my own financial situation (to show that I have the resources to make thair payments), and showing them other deals that I have done successfully.
Finally, one of the most troublesome transactions that less-reputable investors make is the subject-to deal where the investor takes the property and then lets it go into foreclosure.
In my opinion, when you buy a property ’subject-to’, you have a moral obligation to not let that property go into foreclosure. If you are not sure you can ensure that, or if the deal is not good enough to make that happen, you should not do the deal.
Phill
