Im looking to start making Subject To offers but want to know how I go about doing it…
I contact a seller and they allow me to buy their 100,000 property for 70,000. I will be assuming their mortgage and taking over their payments for “X” amt. of months or until the entire payment is made in full. Sounds great…here are some of my many questions…
How long should I take over their payemnts for? Obv. each person is different but what is a normal time frame?
Do the payments I make per month apply towards my final purchase price? Such as payments 1,000 per month, I pay for 3 months and then sell it, do I then cut them the check for 70,000 or 67,000?
What happens if the time frame runs out and you didn’t sell it? Do you purchase the home or do you just lose all you put into it and what you paid per month? It may be obv. but I just wanna make sure.
Im also confused about the contract part of it. How do I find out how much they owe on taxes, judgements, liens, mortgages, etc so I don’t get screwed out of a deal. The owner says the owe 3,000 to the bank. I sign a contract w/ them and pay off the bank. Then come to find out they really owe 23,000!! How can I avoid that?