If I took over the seller’s payment by doing a Sub2, can I evict the seller if he does not move out by the specified date? Although the deed was deeded to me, the mortgate is still under the seller’s name. So, technically, the seller still have some equitable interest in the property. In comparison, I heard that it is illegal to lease properties back to the seller after you have taken their loan Sub2 in Texas because of homestead laws. In that case, would I be able to evict the seller from his own home?
Once the seller deeds the property to you it is no longer their homestead. If you sign a note and deed of trust securing the financing to them they can foreclose on the DOT if you do not pay the note to them or directly to the mortgage company depending on how you work it out. Just a bit off your subject but maybe important .
You may want to wait to close to avoid this situtation altogether. If you close and own the property and lease them back the property you can evict if they do not pay rent. The length of time they are able to stay depends on the length of the lease and the amount of time of the notice you or they must give to vacate. On most leases you need to give 30 days notice. You can definately buy a sub2 and lease it back to the seller.
I would get the lease in writing and that would help avoid a lot of miscommunication. Hope this helps. I would love to hear other opinions too.
Thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737
512-301-9171 home
512-587-6177 mobile