Hello Family,
I received a call from a lady who wants to sell her home.
She said she got from the Habitat for Humanity program.
Are there any stipulations about dealing with these homes?
ARV= $67000
Mortgage bal= $26000(according to her)
Rehab= $7000
Year built= 1996
Comp= $74k- $62k
I am going to drive the neighborhood tomorrow before work.
I was thinking of getting it Sub 2 if everything is on point.
Anyone have suggestions.
She also said she pays her note at a bank, so I guess I would need to have her sign an authorization of release and limited poa.
Give me your opinions.
Thanks. Rob
It sounds at first blush like a state or govenmental subsidized loan, which you do not want to take over Subject To.
If it is this type of loan even an address change can cause problems, also these type of loans have inspectors come out to see if the person on the loan is living there.
You need to see the loan papers this person signed to accurately assess the situation.
Hello- Habitat for Humanity builds homes for the poor and the homeless. The buyer uses no money to purchase these homes, instead provides “sweat equity”. This is when the buyer actually participates in the building and development process of the home.
The mortgage process has many stipulations and the buyer is required to remain in the home for a certain period of time or turn the house back over to H.H.
The organization is charity based. There are specific programs that are set-up for buyers that fall on hard times and are unable to make their payments.
In My opinion I would stay away from this “deal” for two major reasons: This charity program is designed to help the poor and was made possible with volunteers and donations. Secondly, I don’t think it is legal and will certainly have lots of red tape surrounding the mortgage.
For more info go to H.H. website and look for the county the house is located in. I have worked with this program as a volunteer and is a wonderful program for the needy but not for investors.